Citgo Owner Share Sale Moves Forward After Court Ruling (1)

A judge said a Canadian company seeking to collect $1.2 billion as compensation for a gold mine seized in Venezuela can press ahead with the sale of shares in a Houston-based unit of Venezuela’s state oil producer that owns Citgo Petroleum Corp.

U.S. District Judge Leonard Stark in Wilmington, Delaware, concluded Thursday that Crystallex International Corp. has the right to set up an auction for the shares of Citgo’s parent, though it still needs the judge’s final approval before actually selling the stock to satisfy an arbitration award.

Yet the sale is not imminent. Because the U.S. has sanctioned Venezuela, ...