Venezuela Law Determines If PDVSA Bonds Valid, NY Court Says (1)

Venezuelan law will determine whether a series of bonds issued by the national oil company Petroleos de Venezuela SAis valid, New York state’s top court ruled, an outcome that PDVSA has argued invalidates the bonds.

An ad hoc PDVSA board controlled by the Venezuelan opposition is challenging a lower-court ruling that the 2020 bonds are defaulted and that the company must forfeit its controlling stake in Citgo Holding Inc. — which was used as collateral to back the bonds — to pay creditors. Tuesday’s decision comes after the federal appeals court in Manhattan in 2022 asked the state’s Court ...