The US judge had already confirmed in September the validity of the 2020 bonds of the Venezuelan state oil company PDVSA, prompting a judge from another court to move towards the completion of an auction of Citgo Petroleum shares
A New York judge ruled this Friday, October 17, that the Venezuelan State Oil Company (PDVSA) must pay $2.86 billion to bondholders, according to a court document accessed by Reuters.
The bonds are collateralized by shares of Citgo, PDVSA’s refining division based in Houston. The decision by the Southern District of New York has been long awaited by creditors seeking cash compensation for debt defaults, but is expected to be challenged by Venezuela, the news agency reported.
The US judge had already confirmed in September the validity of the 2020 bonds of the Venezuelan state oil company PDVSA, prompting a judge from another court to move towards finalizing an auction of Citgo Petroleum shares.
The state oil company defaulted on bond payments in 2019, putting the Houston-based refiner at risk of seizure by creditors.
Looking for payments
For years, bondholders and expropriated companies in Venezuela have battled in US courts seeking the country’s assets abroad, especially its crown jewel, Citgo, after winning arbitration cases.
After Washington sanctioned PDVSA in 2019, Citgo severed ties with PDVSA and control of the refinery passed to Venezuela’s political opposition through supervisory boards.
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