New York Court Gives Blessing on Venezuela Bond Standstill

A New York court backed a legal move by holders of Venezuela’s defaulted bonds on Wednesday to protect a debt standstill agreement.

New York Supreme Court Judge Andrea Masley said on Wednesday that she agreed on the terms of a deal between Venezuela’s opposition-controlled National Assembly, recognized by the US as the country’s sole legitimate institution, and holders of the country’s defaulted bonds. The deal cements a so-called tolling arrangement suspending the statute of limitations on the debt until 2028 to avoid a flood of litigation.

The decision follows a legal maneuver by a group of investors with more than ...