Post by
agtavy on Jul 27, 2023 6:11pm
Court update July 17
The court updated the case today. It was a very complicated document of 33 pages outlining the sale.
Firstly, it stated PDVSA couldn't produce the certificates, so new ones will be issued.
Then the issue of creditors was addressed in the remainder of the document. In order for a creditor to get paid, they must satisfy seven steps. To date, only Crystallex has done so. I believe GRZ is at step 5. There is no guarantee anyone other than Crystallex will get anything.
The issue of who is next in line (if anyone) was addressed. They are trying to do it by date of attachment, but also are considering paying those who are creditors to PDVSA first (Cononco, for example) versus creditors to Venezuela secondarily (GRZ). The court is favoring creditors to PDVSA but will consult with the Special Master.
They are doing this knowing the possibility of not having enough funds to pay everyone exists.
The court is also opening up attachments to other creditors. I believe there are over 40 additional creidtors hoping to join, but they must meet all seven critera by a certain date, TBD.
Comment by
fishowl on Jul 27, 2023 8:54pm
agtavy - Do you have a link to the 33 page document from the court case? Here's a link with today's proceedings: https://www.reuters.com/business/energy/which-creditors-will-have-priority-citgo-share-auction-2023-07-27/
Comment by
agtavy on Jul 28, 2023 8:04am
fishowl - My brain was fried after reading and trying to summarize 33 pages of legaleese (not a lawyer) into a post that captured the essense of the court order, so thanks for the Reuters story. Here is the link to the full court document: https://drive.google.com/file/d/1q-aBQJYn64_po8kzt60vJ5QEKtX64M_m/view?usp=sharing