Iran Energy News Oil, Gas, Petrochemical and Energy Field Specialized Channel
Related Articles
Venezuela has struck a $1.4 billion deal to retain control of Citgo Petroleum Corp.. the latest settlement that keeps the country’s U.S. crude refineries from falling into the hands of creditors.
The agreement resolves legal actions against state-owned Petróleos de Venezuela SA that sought to wrest control of Citgo. Venezuela’s U.S. refining subsidiary and a critical source of dollar revenues for the cash-strapped country.
The deal calls for President Nicólas Maduro’s government to pay off one of Venezuela’s creditors Crystallex International Corp.. a defunct Canadian mining company trying to collect on a $1.4 billion arbitration judgment. A U.S. court had authorized the seizure of Citgo’s U.S. corporate parent to compensate Crystallex for that debt. Under the settlement. Crystallex agreed to suspend a planned auction of shares in Citgo’s parent company.
Crystallex Chief Executive Robert Fung said Sunday that Venezuela had already paid $500 million in cash and liquid securities. The country is required to post collateral by Jan. 10. 2019. to secure the remainder of what it owes on the judgement. Fung said. If the collateral isn’t posted. Crystallex could resume the auction process.
