By Luc Cohen and Marianna Parraga
A U.S. judge upheld the validity of Venezuelan state oil company PDVSA’s 2020 bonds on Thursday, prompting the temporary suspension of a separate auction for shares in the parent of Venezuela-owned U.S. refiner Citgo.
The bonds are secured by a majority stake in Citgo, which is ultimately owned by Caracas-headquartered PDVSA. The company defaulted on the bonds in 2019, putting the refiner at risk of seizure by creditors.
Bondholders and companies that were expropriated in Venezuela have clashed for years in U.S. courts in pursuit of the country’s overseas assets, especially Houston-based refiner Citgo Petroleum, valued at some $13 billion.
Venezuela defaulted on those and other bonds issued by the country and PDVSA. Several companies whose Venezuelan assets were expropriated by the government of late President Hugo Chavez are seeking to seize the country’s overseas assets, after winning…
