Venezuela’s foreign creditors try to lay claim to Citgo

In August, a federal judge in Delaware gave a bankrupt Canadian gold-mining company, Crystallex International, permission to seize shares of Citgo’s holding company, a decision that Venezuela’s lawyers lamented would “trigger a cascade of adverse events.” Now the other creditors are waiting to see whether the judge allows Crystallex to begin selling those shares — which could trigger even more claims on Citgo. Venezuela faces more than $10 billion in immediate claims from foreign entities. “The pool of creditors is much larger than the pool of available ways to get paid,” said Russ Dallen, a Florida-based managing partner at the brokerage Caracas Capital Markets. “Citgo is the most valuable asset out there.” More…