Venezuela’s U.S.-backed opposition government took steps to seek the Trump administration’s help in making a scheduled bond payment that would protect the country’s prized crude oil refiner Citgo Petroleum Corp. from creditors, WSJ Pro Bankruptcy reported. Lawmakers in Venezuela’s opposition-controlled National Assembly will vote on April 30 to seek approval from the U.S. Treasury Department to tap money that was frozen under U.S. sanctions to make the interest payment. The move underscores the importance of keeping Citgo safe from foreclosure as the stalemate between rival political factions in Venezuela drags on. A failure to pay by state oil giant Petróleos de Venezuela SA could open the door for bondholders to enforce their collateral rights and take control of Citgo, potentially stripping Venezuela of its most valuable foreign oil asset. Although PdVSA technically owes the payment on Monday, there is a grace period of 30 additional days before creditors could call a default and take legal action against Citgo.
