A New York federal judge has ordered Petróleos de Venezuela SA (PDVSA), Venezuela’s state-owned oil company, to pay $2.86 billion to bondholders, marking the latest chapter in a yearslong legal battle over the country’s defaulted sovereign bonds and the ownership of Citgo Petroleum Corp.
In a ruling issued Friday, U.S. District Judge Katherine Polk Failla entered final judgment against PDVSA and its subsidiary PDVSA Petróleo SA, finding them jointly and severally liable for the debt. The judgment also dismissed PDVSA’s own lawsuit against MUFG Union Bank NA (the bond trustee) and GLAS Americas LLC (the collateral agent) with prejudice.
Judge Failla said there was “no just reason for delay” in entering judgment, concluding that the matter was ripe for resolution following her September ruling that the disputed PDVSA 2020 bonds were validly issued under Venezuelan law.
The $2.86 Billion Judgment
The total judgment stands at $2.86 billion, and Judge Failla ordered that over $609,000 in interest will accrue each day after Friday until payment is made. The court deferred a ruling on attorney fees and litigation costs—expected to total tens of millions of dollars—until after PDVSA’s forthcoming appeal to the Second Circuit Court of Appeals.
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