US extends protection for Venezuela-owned Citgo until May
The US Treasury Department extended a license protecting Venezuela-owned refiner Citgo Petroleum from creditors until May 5. This move delays potential claims.
The United States government has extended a license that protects the Venezuela-owned refiner Citgo Petroleum from its creditors through May 5. The Treasury Department updated its website on Thursday to reflect the extension, which continues to shield the company from potential seizure by those holding claims against the Venezuelan government.
Citgo, a major U.S.-based refiner, is a subsidiary of the Venezuelan state oil company PDVSA. It has been a primary target for creditors seeking to satisfy billions of dollars in unpaid debts and legal judgments. This latest extension provides a temporary safeguard, preventing bondholders from taking control of the company's shares.
The move is part of a broader strategy to preserve the asset as legal and political developments continue to unfold. Without the Treasury's intervention, Citgo would face immediate risks of liquidation or transfer of ownership to satisfy outstanding international arbitration awards.
