Crystallex offers to settle with Citgo, says oil refiner can afford to pay

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HOUSTON — The Canadian miner seeking a court auction of shares in Citgo Petroleum’s parent to settle a debt owed by the Venezuelan government is willing to willing to settle, its attorney said on Tuesday.

The seventh largest U.S. oil refiner has liquidity to pay the $970 million judgment to Crystallex International to avoid an auction of shares in parent PDV Holding, said attorney Rahim Moloo. Venezuelan-owned Citgo is the crown jewel of the country’s foreign assets.

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“In light of Citgo’s recently reported profits, it seems clear that Venezuela can pay Crystallex and the 2020 bondholders to avoid a sale of Citgo,” said Moloo. Citgo posted a $1.54 billion net profit through June this year, and is expected next month to deliver strong third-quarter earnings. (Reporting by Gary McWilliams)