Venezuela is spending a seemingly inordinate amount of money to keep control of Citgo Petroleum Corp., its prized U.S. refiner that most analysts predict it will eventually lose anyway, WSJ Pro Bankruptcy reported. The embattled South American country shelled out $950 million this week to bondholders with collateral rights over Citgo, a critical crude oil customer and revenue source. The payment ensures that these bondholders won’t immediately wrest control of Citgo from its owner, state energy company Petróleos de Venezuela SA. Those are the only bonds that Venezuela has continued to pay down since spiraling into widespread default on last year on tens of billions of dollars in debt. Venezuela is apparently eager to protect its stake in Citgo, which is believed to be the country’s largest external subsidiary and the only significant asset that creditors can reach through the U.S. court system.
