U.S. Court Halts Venezuela Bondholder Talks Amid Citgo Auction

A U.S. court officer has concluded discussions with Venezuela 2020 bondholders concerning the auction's proceeds of Citgo Petroleum's parent company shares. Delaware District Court Special Master Robert Pincus cited unsuccessful negotiations in his filing. The auction aims to address $21.3 billion in claims against Venezuela and PDVSA due to expropriations and defaults.

A U.S. court officer overseeing an auction of shares in a Citgo Petroleum parent has ended talks with holders of Venezuela 2020 bonds seeking proceeds from the auction, a filing revealed on Friday.

Delaware District Court Special Master Robert Pincus stated that an agreement could not be reached with the bondholders, and discussions have ceased. The bonds were backed by a pledge involving a controlling stake in another Citgo parent. The court is auctioning shares in PDV Holding to address $21.3 billion in claims against Venezuela and state-oil firm PDVSA over expropriations and debt defaults.

Pincus previously missed deadlines to provide the court with the auction winner and sale terms, blaming legal filings by bondholders for complicating negotiations with a bidder. Bidder Gold Reserve withdrew this month due to delays and uncertainties. Pincus mentioned in his filing that he might revisit negotiations with the bondholders at a later date.