Who Gets Citgo’s Assets If Venezuela Defaults?

One of the topics discussed was whether Citgo oil stations could be seized as collateral, they said. If Venezuela defaulted, it would be difficult for the nation’s bondholders to prove that they could confiscate Citgo’s assets, they said. Citgo is owned by PDVSA through PDV Holding Inc. and its subsidiary PDV America Inc., which are incorporated in Delaware. While the board members are appointed by Venezuela’s president, the government is not liable for the obligations of PDVSA or the obligations of its subsidiaries, according Citgo’s bond prospectus. If Citgo is “not directly run and administered by the Venezuelan government, there are layers of bureaucracy in the corporation itself that make it very difficult to attach any assets,” said Buchanan’s Fernandez. “It’s not like licking a stamp and putting it on an envelope.” More…