American court turns its back on Guaidó and declares valid PDVSA bonds

Archive

The judge of the New York district court, Katherine Polk, rejected the demand for invalidity of the PDVSA 2020 bonds, processed by the National Assembly and authorized the trustee MUPG Union Bank to take the necessary measures to enforce the guarantee.

The bonds are "valid" and therefore the debt they cause is fully "enforceable", says the ruling reported by Reuters on its website.

In addition, the judge's ruling indicates that the breach of the commitments derived from PDVSA 2020, the state oil company loses its “controlling stake” in Citgo Holding. These securities have as collateral 50,1% of the shares of the refining company owned by the Venezuelan state in the United States.

Last year Juan Guaidó's team filed a lawsuit to declare the bonds invalid on the grounds that the Venezuelan government had issued them without the approval of the National Assembly.

The argumentative basis was that the bonds were issued without the legal authorization of the National Assembly elected in 2015, however, Judge Polk Failla denied the validity of this position and focused her decision on the default.

Sponsored links