US court overturned decision in favor of CITGO bondholders

Published at: 06/07/2024 10:01 AM

The Second Court of Appeals of the United States on Wednesday overturned a ruling that favored the collection actions of bondholders of the Venezuelan-owned refiner CITGO.

In its ruling, the court dismissed the decision of Judge Katherine Polk Failla, who ruled in favor of the holders of Petroleos de Venezuela (PDVSA) bonds in 2020 and authorized the seizure of its subsidiary Citgo, reports the newspaper Úlmas Noticias, citing Agencia EFE.

The court said that Judge Failla had not considered Venezuelan law when she issued her ruling to allow the seizure and collection of bonds issued by the Venezuelan Government.

The court sent the case back to the judge to reevaluate her decision, however, it's not clear if the decision will affect the sale of CITGO allowed by a Delaware federal court.

With the support of Venezuela's opposition sector, the United States took control of Citgo, whose value is around 13 billion dollars.

Mazo News Team