On Thursday, November 12th, 2020, the representation of Petróleos de Venezuela S.A. (PDVSA) presented before the District Court of the Southern District of New York a ‘protective notice’, by means of which our intention is expressed to appeal the ruling to be published by the court in the next few days, according to the which it will declare the nullity of the lawsuit filed in 2019 by PDVSA regarding the PDVSA 2020 Bonds and the collateral – irresponsibly established by Maduro’s regime – on 50.1% of the shares of CITGO Holding, Inc. (CITGO) , Venezuela’s main asset abroad, and which is estimated to serve as a the productive base once democracy is restored.
This appeal will be exercised due to the inconformity of the lawyers of the Venezuelan oil company and the Special Prosecutor’s Office of the Republic – appointed by President (E) Juan Guaidó and the National Assembly – with respect to the aforementioned ruling.
From the moment that Nicolás Maduro’s regime announced in 2016 its intention to renew or refinance an existing debt (2016 Bonds), issuing new Bonds with advantageous and “extraordinary” benefits, and also pawning the property of CITGO, the The National Assembly warned of the illegality of said operation, and in 2019, declared its unconstitutionality. For this reason, its nullity has been demanded before the New York District Court, having as its main objective the protection of CITGO against a possible immediate execution of the collateral granted by Maduro’s regime. Hence, the importance of this decision referred to above being appealed, and that an Appeals Court consider the arguments that were not reviewed by the Court of First Instance.
The irresponsible debt inherited from the kleptocratic regimes of Hugo Chávez and Nicolás Maduro is estimated at more than 150 billion dollars, and for this reason the Interim Government since its establishment, has made permanent efforts to reconcile and restructure that debt – without repudiating in any way. At this time, the obligations legitimately contracted – as well as the negotiations that will necessarily take place as soon as democracy is institutionalized, the humanitarian crisis is addressed and international financial support is available.
Our duty is to defend the highest interests of the nation for the benefit of the Venezuelan people. We will not stop taking the necessary actions to ensure that objective.