This Tuesday the ad-hoc administrative board of Petróleos de Venezuela, S.A. (PDVSA) in coordination with its subsidiaries, PDVSA Petróleos, S.A. and PDV Holding, Inc., sued for the nullity of the contracts signed in 2016 by PDVSA to issue the PDVSA 2020 bond.
This operation was questioned by the National Assembly before the issuance of the bond, not only its financial rationality but also, the collateral of 50.1% of the shares of Citgo Holding, Inc. With that transaction Maduro’s regime not only aggravated PDVSA’s financial situation, but also placed PDVSA’s most important asset abroad at risk.
One of the first objectives of the legitimate Government has been to protect Venezuela’s assets abroad, as they are necessary to address the complex humanitarian emergency. This objective has been supported by the international community and especially by the Government of the United States, who last September 24th granted the protection measures that allow PDVSA to demand the nullity of the 2020 bond without the risk of losing Citgo.
In accordance with the guidelines for debt renegotiation approved on July 1, the legitimate Government and the National Assembly will recognize all legitimate claims inherited from the regimes of Hugo Chávez and Nicolás Maduro. But this process requires, with the caution and rigor of the case, to evaluate the claims based on contracts signed by the Chávez and Maduro regimes in violation of the Constitution. In such cases, the objective will always be to resolve the differences that may arise in a friendly manner.
If this objective is not achieved, the Government will take all legal actions to ensure respect for the Constitution, without ever closing the door to the friendly settlement of those claims.