The U.S. Treasury Department on Wednesday extended Venezuelan oil refiner Citgo Petroleum's temporary protection from creditors to January amid an easing of sanctions on Venezuela's energy sector after a pact on a presidential election.
The three-month extension again paves the way for payment settlements with creditors in the coming months, but does not stop the course of an auction of shares in Citgo's parent ordered by a U.S. court.
A Delaware judge will launch the auction on Oct. 23 while the court examines the claims of about a dozen creditors who have about $23 billion in judgments for asset expropriations and payments defaulted by Venezuela. The first bidding round will be in January.
A senior U.S. official said on Wednesday that the broad sanctions relief measures issued this week are not expected to interfere with the Delaware case or others involving Venezuelan assets frozen abroad.
Half of the refiner's shares are collateral for 2020 bonds the Venezuelan state oil company PDVSA issued. The holders of those bonds and Venezuela are fighting in a New York court.
