EnergieNet
CARACAS
EnergiesNet.com 09 30 2024
COMMUNIQUE FROM THE AD HOC ADMINISTRATIVE BOARD OF PDVSA
Houston, September 27, 2024
Dear Venezuelans,
Today, the Special Master (or Custodian Trustee) in the case of Crystallex vs. Venezuela has presented his recommended bidder for the court-ordered sale by the U.S. District Court of Delaware of 100% of the shares in PDVH. According to the information provided, the offer is contingent upon multiple unresolved issues within and outside the judicial process. Therefore, this action does not represent the end of the road or the definitive closure of this process. While we face a complex scenario, we must convey to the public that PDVSA still retains ownership of its subsidiary companies in the United States, and there remain legal mechanisms and opportunities to safeguard its interests.
It is essential to note that this situation is a direct legacy of the expropriations and defaults caused by the irresponsible management of the regimes of Hugo Chávez and Nicolás Maduro, whose handling of debt and financial commitments endangered Venezuela’s and PDVSA’s strategic assets. With the current court-ordered process, the Venezuelan people have been doubly victimized.
The Court has scheduled a hearing for November 19, 2024, to review the Special Master´s recommendation. Should it be approved, PDVSA’s rights to appeal the case will be activated. It is also important to highlight that if the process does not satisfy most creditors—who may see this recommendation as insufficient and unbalanced—they, too, will have the right to object to the process.
In addition to the judicial process, as we have stated on multiple occasions, the transaction cannot be completed without approval from the U.S. Department of the Treasury, which must issue a license. This adds a layer of scrutiny to the process. In this regard, additional and extraordinary conditions are required for the transaction to close. Therefore, even if the Court initially approves the judicial order for the forced sale of PDVH shares, we do not know whether this transaction will ultimately be completed or when.
On July 28, 2024, Venezuelans took an important step in the right direction to safeguard PDVSA’s assets. The overwhelming majority election of Ambassador Edmundo González Urrutia laid the foundation for a new administration, with international recognition, to focus on a global restructuring of the debt with creditors, which in turn would allow PDVSA to restructure its own debt. Venezuelans paved the way for this scenario to become possible in the medium term. So far, the usurpation of power by Nicolás Maduro’s regime has been the main obstacle to this alternative, making it responsible for the failure to reach payment agreements with creditors. This same usurpation prevents the return of significant oil investments to the country and the consequent recovery of the economy.
PDVSA Ad Hoc reiterates its unwavering commitment to defending its assets and will keep all Venezuelans and interested parties informed about the progress of this process. Although the road has been challenging, there is still much we can do to protect CITGO and ensure the best possible outcome in safeguarding PDVSA’s assets.
Sincerely,
PDVSA Ad Hoc Administrative Board
energiesnet.com 09 30 2024
