PdVSA hires White & Case for Citgo sale and debt restructuring
Updated
Updated · The Wall Street Journal · May 8
PdVSA hires White & Case for Citgo sale and debt restructuring
9 articles · Updated · The Wall Street Journal · May 8
The US Treasury on Tuesday authorised Venezuela and PdVSA to hire advisers as Caracas prepares to tackle more than $100 billion in defaulted bond debt.
White & Case will advise on the court-supervised roughly $6 billion sale of Citgo to Elliott affiliate Amber Energy, while investors see the move as a sign restructuring talks may accelerate.
Venezuela's external debt exceeds $150 billion including arbitration and bilateral claims, and creditors are weighing options including an out-of-court deal, bankruptcy or a debt-for-equity swap.
With Venezuela's new government opposing the deal, can its $150B debt be resolved without selling its prized Citgo refinery?
With creditors like China and Russia excluded, can Venezuela's historic debt restructuring succeed without its largest bilateral lenders?
Is Venezuela’s U.S.-backed economic plan a path to recovery or a loss of its vast oil wealth?
PdVSA Hires White & Case to Challenge $5.9 Billion Citgo Auction Amidst Sovereign Debt Crisis
Overview
In late 2025, a Delaware court approved a $5.9 billion bid for Citgo's parent company, sparking fierce opposition from Venezuela and PdVSA, who contest the sale and appointed Arianny Viviana Seijo Noguera as Attorney General to lead their defense. Amid growing creditor claims totaling $19 billion, PdVSA hired White & Case in 2026 to challenge the sale, negotiate with creditors, and influence the critical OFAC approval required by May 2026. This legal battle stems from a 2011 asset expropriation and a 2018 U.S. court ruling that PDVSA is Venezuela's alter ego, setting a global precedent for creditor claims on state-owned assets. The outcome will shape Venezuela's economic future and international sovereign debt enforcement.