Houston Chronicle by Marissa Luck Aug. 5, 2019
Venezuelan leader Nicolas Maduro’s efforts to regain control of Citgo Petroleum were set back after a Delaware judge denied Maduro’s authority to appoint the leadership of the Houston refiner.
Since February, Citgo, a subsidiary of Venezuela’s national oil company PDVSA, has been run by a board of directors backed by Venezuela’s opposition leader Juan Guaido, who is recognized by the Trump administration and dozens of other countries as Venezuela's interim president. The president of Venezuela has the legal authority to appoint a board of directors for PDVSA and its subsidiaries.
Late Friday, the Delaware judge presiding over the case — Kathaleen McCormick — ruled that the Trump administration’s recognition of Guaido as the legitimate leader of Venezuela gives his government legal authority to appoint Citgo’s board of directors. McCormick, however, stopped short of confirming the board members individually, giving the Maduro-backed team 10 days to file a challenge in the process. If lawyers for Maduro-backed board cannot show the Guaido board was improperly appointed, McCormick could issue a ruling confirming its members by next week.
Citgo is considered Venezuela's most prized foreign asset and a linchpin in either Maduro’s efforts to further consolidate control in the economically ravaged South American country or Guaido’s plan to rebuild the country if the Maduro regime falls.
More:
https://www.houstonchronicle.com/business/energy/article/U-S-court-sides-with-Venezuela-s-opposition-in-14282603.php
