US supports Venezuelan opposition in Citgo bond fight
Gold Reserve Ltd, listed on the Bermuda Stock Exchange, has highlighted a new filing by the United States Government in a closely-watched New York court battle over the validity of the 2020 Petróleos de Venezuela, SA bonds.
In a Statement of Interest submitted last week, the US Government reaffirmed its recognition of the 2015 National Assembly as the only democratically elected government of Venezuela and rejected Nicolás Maduro’s regime as illegitimate. The bonds, issued in 2016 under Mr Maduro, have been challenged as unlawful under Venezuelan law.
The filing urged the court to give “respectful consideration” to the National Assembly’s interpretation of Venezuelan law, while emphasising that the US was taking no position on whether the bonds are ultimately enforceable.
The Department of State also drew attention to deteriorating conditions in Venezuela since its last filing in 2020, citing corruption, human rights abuses, narcotics trafficking and a refugee crisis that has driven more than 20 per cent of the population from the country.
It noted that Edmundo González, the opposition candidate, was the true winner of the July 2024 presidential election, despite Mr Maduro declaring victory and launching what it called a “campaign of terror and repression”.
Gold Reserve, which trades under the symbol GRZ.BH in Bermuda, is among several creditors seeking to recover billions of dollars linked to Venezuela’s state-owned oil company and its American subsidiary, Citgo. The company has been active in the US court-supervised sales process involving PDV Holding Inc, Citgo’s indirect parent, and has previously submitted bids through its Delaware subsidiary.
The company said the American position strengthens the standing of the opposition-led National Assembly in ongoing litigation.
Gold Reserve remains one of the few BSX-listed companies directly tied to the outcome of Venezuela’s sovereign debt disputes.
• For the complete filing from the US Government, see Related Media
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