Venezuela bondholders file claim to New York court amid tolling agreement
12/10/2023 08:51
LONDON, Oct 12 (Reuters) - Holders of defaulted debt
issued by Venezuela and its state oil company said they made two
filings in New York on Wednesday to validate an August agreement
designed to "toll", or pause, the statute of limitations on
claims.
Venezuela defaulted on roughly $60 billion worth of its
international bonds in 2017. Its debt was issued under New York
law, which effectively gives the holders six years to sue the
country in the event of a default.
In August, bondholders said they backed an offer by the
country's opposition-led National Assembly to push back the
legal deadline.
In a statement overnight, the Venezuela Creditor Committee
said it had submitted a claim for the debt along with other
creditors and in coordination with the Asset Protection
Committee (APC) and the ad hoc administrative board of state-oil
firm Petroleos de Venezuela.
They then asked the court to terminate those proceedings
while keeping creditors' rights to sue intact until the end of
2028.
"These filings seek to ensure the enforceability of the
announcement made in August of this year ... tolling the statute
of limitations and prescription periods applicable to the Bonds
and related enforcement actions until December 31, 2028," the
Venezuela Creditor Committee said in an emailed statement.
"Absent this cooperative solution reached in coordination with
the APC and the Ad Hoc Board, bondholders’ fiduciary obligations
may have required initiating extensive and costly direct
litigation against Venezuela and PDVSA."
International funds including Fidelity, T. Rowe Price,
Mangart Capital Advisors, Greylock Capital Management and GMO
have long been part of the creditor committee.
(Reporting by Karin Strohecker. Editing by Gerry Doyle)
((karin.strohecker@thomsonreuters.com; +442075427262; Reuters
Messaging: karin.strohecker.reuters.com@reuters.net))