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Locke Lord QuickStudy: OFAC Continues Restrictions Blocking Enforcement of CITGO-Backed PdVSA Bonds
An August 12, 2024, the U.S. Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) further delayed to November 12, 2024, U.S. persons’ rights as bondholders of Petróleos de Venezuela, S.A. (PdVSA) 2020 8.5% bond (the “Bonds”) to execute on CITGO shares that were pledged as collateral for the defaulted Bonds. OFAC published General License (“GO”) GL 5P, which replaced GL 5O that was set to expire on August 13, 2024. Concurrently, OFAC revised FAQ 595, maintaining its policy to allow applicants seeking specific licenses to negotiate proposals to restructure or refinance payments due to bondholders.
Conclusion
This paper is intended as a guide only and is not a substitute for specific legal or tax advice. Please reach out to the authors for any specific questions. We expect to continue to monitor the topics addressed in this paper and provide future client updates when useful.
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