Venezuela’s State Oil Co. Fights $1.9B Bond Order – Law360

Law360 (June 22, 2021, 7:13 PM EDT) — Venezuela’s state-owned oil company told the Second Circuit that holders of $1.9 billion in defaulted bonds do not have a legitimate claim over its asset Citgo Holding, because the underlying deal was an illegal “Maduro-orchestrated transaction” condemned by the U.S.-recognized opposition government.

According to an ad hoc board of Petróleos de Venezuela SA appointed by Interim President Juan Guaidó, the 2016 bond swap — in which the administration of Nicolás Maduro offered PDVSA’s “foreign crown jewel” Citgo as collateral — was never authorized by the National Assembly, as required under the Venezuelan Constitution.

PDVSA argued the transaction went against the orders…

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