NEW YORK, 30th October 2019 – PDVSA and PDV Holding filed a complaint against MUFG Union Bank (Trustee) and GLAS Americas (Collateral agent) seeking to declare the P20 bond and its pledged collateral void and null. The main argument of the plaintiffs is that the PDVSA 2020 notes were not authorized by the Venezuelan National Assembly, thus violating articles 150 and 187.9 of the Venezuelan Constitution.
The lawsuit, which is being backed by Juan Guaido’s interim administration, includes 2 causes of action: one to declare the nullity and illegality of the PDVSA 2020 notes and its indenture and another one to request the invalidation of the pledge agreement that established the collateral of the bond, which is guaranteed by 50.1% of CITGO’s shares.
The Office of the Special Prosecutor of Venezuela named by Guaidó’s administration also backed the lawsuit, promising to provide all the legal assistance required to fulfill the objectives set. You can read the complete official statement (in Spanish) here: https://presidenciave.com/es/internacional/comunicado-de-la-oficina-del-procurador-especial-de-la-republica-en-relacion-a-los-bonos-2020/