Oceanografia keeps contracts

A legal ruling in Mexico will allow Oceanografia to keep its contracts with oil company Petroleos Mexicanos (Pemex) while in bankruptcy.

The offshore shipowner will continue working on existing projects at the same time that it is being charged of defrauding Citigroup of $400m.

Mexico took control of Oceanografia in February after Citigroup said its Mexican arm, Banamex, lost the money on loans granted to the company based on fraudulent invoices.

Chief executive, Amando Yanez, was officially arrested in early June before being released on a $6.2m bail.

According to the 15 August ruling, the move will let Oceanografia keep a regular source of income while being under the guardianship of the state.

Oceanografia had more than 11,000 employees and 69 ships prior to the government seizure.

Yanez, who controlled 80% of the company, has run it since 1994 after taking over from his father.

Citigroup has fired 11 Banamex employees over the loans to Oceanografia.