Holders of Venezuela’s most watched PDVSA bonds, which mature in 2020, are due a $72 million interest payment in late April. Those bonds are collateralized with 50.1 percent of Citgo Holdings’ equity, meaning in the absence of a payment, creditors could seize control of the company.
The United States imposed sanctions on Venezuela in 2017 that have prevented Citgo from repatriating dividends to its parent company. It had about $500 million in cash at the end of September, according to a creditor who spoke to Reuters last week, and $900 million in available credit.
Citgo separately faces a July deadline to refinance its revolving credit, a task that could be delayed due to sanctions affecting the subsidiary’s ability to access to credit.