Venezuela Defaults on Its Last Bond, Setting Up Legal Showdown
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The team advising Venezuelan National Assembly President Juan Guaido skipped a payment Monday on the nation’s only bonds not in default, setting up a legal showdown with creditors.
Rather than pay the $913 million due on Petroleos de Venezuela’s 2020 notes, Guaido’s advisers say they will take legal action against investors to fight any efforts to seize the collateral on the bonds -- 50.1% of Citgo Holding Inc.’s shares. Their argument is that the debt is illegal because the opposition-led National Assembly never approved its issuance. On Thursday, the Trump administration moved to temporarily shield the collateral from creditors.