The executive director of Citgo, Carlos Jordá, sent an internal communication to his employees in which he announced that the company is preparing for the auction of shares of PDV Holding, a process that could last until July 2024.
The federal district judge, Leonard Stark, in Wilmington, Delaware, determined that this October 23 will begin the process of selling shares that PDV Holding has in Citgo, as a mechanism to pay creditors who claim debts contracted by the State.
In accordance with BloombergStark set a schedule to carry out an auction, the mechanism used for the sale of PDV Holding shares, which will last until at least July 2024, the date on which the sale of shares is expected to be completed.
From this July 24, preparations will begin to start this process, in a stage that should last 90 days.
A US District Court set Oct. 23 as the start of the sale process of shares belonging to Citgo Petroleum Corp.’s parent company, PDV Holding, to pay off creditors who have sought payment from the Venezuelan state.
— Fabiola Zerpa (@zerpius) July 21, 2023
Last March, Stark gave the green light to the start of the Citgo sale process even despite the protection offered by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, which restricts any transaction related to the shares that PDV Holding has in Citgo.
According to the judge of the District Court in Delaware, OFAC’s protection does not prevent “preliminary measures” from being taken on the PDV Holding shareholding offer.
* Also read: Negotiation or auction? The crossroads of Citgo in the US
The most recent renewal of the OFAC license that protects Citgo was issued on July 19 and expires on October 20, three days before the start of the share sale process outlined in Stark’s schedule.
The executive director of Citgo, Carlos Jordá, sent an internal communication to his employees in which he announced that the company is preparing for the auction process of PDV Holding shares. The PDVSA subsidiary in the United States will follow the steps indicated by the court, although there still seems to be a window for negotiation with creditors.
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