Case No. VENEZUELA-2018-358633-1

Date issued: Mar. 12 2020

You've hit a wall. Sign in if you have an account, or learn more about TURBOFAC and subscription options.

TURBOFAC Commentary (1431 words)

Notes:

1) CASE NO. VENEZUELA-2018-358633-1 BACKGROUND/TIMELINE

Case No. VENEZUELA-2018-358633-1 is an extremely important/illuminating guidance letter as it relates to the notion of “new debt,” in particular where invoices are issued pursuant to an underlying contract that predates the relevant “new debt” effective date. The timeline of relevant events, so far as is discernible from the information available to us, is as follows:

a) June, 2017: CITGO (a “Government of Venezuela” (“GOV”) entity owned by PDVSA) and Rothwell Energy Services (Rothwell) enter into the “agreement for engineering, procurement and construction project” (the “Agreement”).

b) August 24, 2017: EO 13808 is issued, prohibiting all dealings in “new debt” of “PDVSA” with a maturity greater than 90 days” and “new debt” of other segments of the GOV of a maturity longer than 30 days.

c) May, 2018: the Agreement...