On Friday, November 15, 2019, the authorities of the Ad-hoc Board of Directors of Petróleos de Venezuela, S.A. reached an agreement with the main holders of the PDVSA 2020 Bond, grouped in the MUFG Union Bank and in the financial representation agency Glas Americas. This agreement implies the elaboration of a schedule, of approximately 6 months, during which the holders of these papers agree not to claim or advance in the taking of CITGO’s stock, while the annulment trial of the 2020 Bonds advances. This is a new achievement in the protection of the main asset of Venezuelans by the Legitimate Government.
The agreement reached by the parties was presented to Judge Katherine Polk Failla, of the Southern District Court of New York, where a nullity lawsuit against the PDVSA 2020 Bond introduced by the Legitimate Government of Venezuela is based on the National Assembly’s questioning of the illegality of these papers, as they were backed by CITGO stock – an asset of national public interest – without prior approval by Parliament.
The Legitimate Government of Venezuela has insisted on achieving an orderly and negotiated solution with the holders of the PDVSA 2020 Bond, which takes into account the objections of the National Assembly and the Complex Humanitarian Emergency that the country is experiencing. In line with this, the aforementioned agreement was reached with the bondholders. This action represents a victory for PDVSA’s Ad-hoc Administrative Board and for the Legitimate Government in the fight for the defense of CITGO and all the assets of the Venezuelan people.
Finally, the Legitimate Government of Venezuela ratifies its will to reconcile this and all the claims inherited from the Chávez and Maduro regimes, without prejudice to its right to analyze, on a case-by-case basis, those that may be catalogued as dubious, in accordance with the guidelines for debt negotiation, approved by the National Assembly on July 1, 2019.