US Judge Says PDVSA Bonds Valid, Clearing Way for Citgo Sale (1)

A federal judge in New York confirmed the validity of some bonds issued by Venezuela’s state-owned oil company, removing a major uncertainty in the court-ordered auction of Citgo’s parent.

US District Judge Katherine Polk Failla ruled Thursday that the notes, which matured in 2020, and their governing documents are valid under Venezuelan law. The decision comes as Citgo’s parent, PDV Holding, which is currently being auctioned off by a Delaware court to satisfy over $20 billion in claims.

Citgo runs a group refineries, pipelines, terminals and fuel-distribution channels in the US. Its parent, PDV, is the US subsidiary ...