Contrarian Capital Management, LLC v. Bolivarian Republic of Venezuela (1:19-cv-11018) (SDNY, Dkt. 126) - Final Judgment and Permanent Injunction

Date issued: Oct. 27 2021

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TURBOFAC Commentary (1170 words)

Notes:

(1) BACKGROUND – JUDGMENTS ENTAILING “CONTINGENT UNLICENSED ‘TRANSFERS’”

On 12/01/20, an SDNY judge issued a judgment [1], finding the PDVSA to have defaulted on the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond. The judgment "ORDERED, ADJUDGED, AND DECREED that [ ] the Trustee shall recover from PDVSA and PDVSA Petróleo, jointly and severally, $450,346 per day in interest for each day from December 1, 2020, to the day on which judgment is entered on the docket of the Court."

[1] https://storage.courtlistener.com/recap/gov.uscourts.nysd.525475/gov.uscourts.nysd.525475.229.0_2.pdf

The judgment was issued
subsequent to OFAC's October 24, 2019 issuance of Venezuela GL 5A, which effectively removed all authorizations for transactions related to the notes at issue in the litigation. The notes (and PDVSA itself) were, at the time of the judgment, blocked pursuant to EO 13850 of November 1,...