HomeEconomyOilUS court annuls ruling that favored Citgo bondholders

US court annuls ruling that favored Citgo bondholders

The Second US Court of Appeals said that Judge Katherine Polk Failla did not consider Venezuelan law when she issued her ruling to allow the seizure and collection of bonds issued by the Venezuelan government.

The United States Second Court of Appeals on Wednesday overturned a ruling that favored collection actions by bondholders of the Citgo refiner, owned by Venezuela.

In its ruling, the court discarded the decision of Judge Katherine Polk Failla that in 2020 ruled in favor of the bondholders of Petróleos de Venezuela (PDVSA) and authorized the seizure of its subsidiary Citgo, reports Agencia EFE. 

The court said that Judge Failla had not considered Venezuelan law when she issued her ruling to allow the seizure and collection of bonds issued by the Venezuelan government.

The court sent the case back to the judge to re-evaluate her decision, however, it is unclear whether the decision will affect the Citgo sale permitted by a federal court in Delaware.

With endorsement of the Venezuelan opposition sector, the United States took control of Citgo whose value is around $13.000 billion.

Leave a response

Please enter your comment!
Please enter your name here