PDVSA’s Arguments Rejected
PDVSA had contended that the bonds were unlawfully issued because Maduro lacked legislative approval and that they jeopardized Citgo, one of Venezuela’s most valuable foreign assets. The company argued the notes were part of an illegitimate financial transaction executed by an unconstitutional regime.
Judge Failla rejected those arguments, siding with the financial institutions and concluding that PDVSA “failed to demonstrate any defect” that would render the notes unenforceable under Venezuelan law.
Bondholders and Trustees Seek Full Compensation
In a joint letter Thursday, Union Bank (now succeeded by U.S. Bank National Association) and GLAS Americas told the court that the judgment was worth $2.86 billion, and interest was accruing rapidly. They emphasized that the bond trustee and collateral agent had been forced to front tens of millions in legal costs over nearly six years of litigation.
“The trustee and the collateral agent are entitled to a judgment for these out-of-pocket fees and expenses now,” the firms wrote, noting that doing so “is likely to minimize further proceedings in this court in the future.”
Representation and Case Details
For MUFG Union Bank NA and GLAS Americas LLC: