Locator: 46861VENEZUELA.
A day after a New York court ruling that Venezuelan law would determine the validity of bonds issued by state-run PDVSA oil company, Bloomberg reports that bonds have “collapsed,” slumping on questions over their validity.
At stake is $2 billion in PDVSA bonds, and PDVSA notes dropped 17 cents following Tuesday’s ruling.
On Tuesday, the New York State Court of Appeals ruled on the matter after Venezuelan opposition, which controls the state-run oil company’s U.S. assets, said the bonds set to mature in 2020 were invalid because they had not been approved by Venezuela’s National Assembly. The New York Court of Appeals ruled that validity must be determined by local law in the place of issuance.
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