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PDVSA Must Cede Citgo Stake After Bond Default, Judge Rules (2)

Oct. 16, 2020, 11:52 PM

Venezuela’s state-owned oil company defaulted on a series of bonds and must forfeit its controlling stake in U.S.-based Citgo Holding Inc., a federal judge in New York ruled.

Petroleos de Venezuela SA, or PDVSA, sued last year to block creditors from seizing an interest in Citgo, which was used as collateral to back the 2020 bonds. On Friday, the judge declined its request to rule the bonds invalid and said MUFG Union Bank, a trustee, can seek the sale of the collateral.

That may be delayed, however. The U.S. stepped in with a measure last October to ...