Government plans to dissolve the indebted PDVSA and create new corporation

After the great plundering of their assets, after the billionaire embezzlement committed by their "heroes" in the reddish-red PDVSA, the heirs of the Chavez revolution are setting up a trap with which they intend to strip the Venezuelans of the remains of the main national company , once the fourth energy corporation in the world and an international reference in the context of the Organization of Petroleum Exporting Countries (OPEC).  

The plot that weaves the dictatorship was uncovered by the Argus agency, a consulting firm in the United Kingdom, leader of energy and commodities reports and analysis, which reported on Wednesday on the "proposal" to be submitted to the fraudulent Cuban community assembly. the constituent David Paravisini , an "oil expert" remembered for his opinion that the explosion in the Amuay refinery, in August 2012, was caused by an act of sabotage.

According to a report published by Argus on its website, dated October 23, the proposal is to replace PDVSA with an entity that would tentatively be called the Venezuelan Energy Corporation (CVE).

Argus points out that the Paravisini project, which chairs the Petroleum Committee of the National Constituent Assembly, which usurps the functions of the legitimate National Assembly, would leave PDVSA with all the debts that keep it financially suffocated, prostrate and unable to undertake the investments that it requires to raise its production, at the lowest level of the last 30 years.   

PDVSA, now with red-red numbers on its balance sheets, would have to face debts with bondholders, debts with its suppliers, commitments with partners in joint ventures, labor liabilities, debt with the embezzlement in the savings bank, with which it drags its retired workers with the innumerable hidden debts generated by corruption.

The final destination of PDVSA would be the bankruptcy, the dissolution, the burial of the flagship industry of productive Venezuela, which would have no way of coping with liabilities Argus places at 22 billion dollars, although it needs an estimate because it does not have of precise data since PDVSA did not perform any external financial audit in 2017.

The new corporation that would create the dictatorship, in turn, would be born as a rich child of cradle. The CVE would absorb all the administrative, operational and physical assets of Pdvsa, including Citgo, its subsidiary in the United States.

Compromise

Argus details that PDVSA does not pay the interest and capital of all its outstanding debts since September 2017.

According to the consulting firm, the state-owned company only keeps up to date with the obligations derived from the Pdvsa 2020 Bond, an issue of 3,400 million dollars that is guaranteed by 50.1% of Citgo's shares. Next Saturday, October 27, the obligation to pay more than 950 million dollars of capital and interest for this bond expires.

The maneuver that cooks the regime, which has the trap embedded in its DNA, the nude Argus in his report.

With the decline in the production of crude oil, which currently stands at 1.2 million barrels per day and in decline, the government of Nicolás Maduro has no capacity to pay. It is obliged to privilege the dwindling foreign exchange earnings to guarantee a minimum of food imports so that the country does not starve.

In addition, the final decision of a US court on the date of the auction of Citgo, already decreed, and that could only stop if it immediately cancels 1.2 billion dollars to the Canadian mining company Crystallex is near.

"The proposal to create the CVE be a strategy to cushion the blow of the possible loss of Citgo and excise liabilities, possibly declaring bankruptcy or dissolution of Pdvsa, a scenario that has been discussed in the international financial community for months , " is read in the report.

However, Argus does not predict the success of the scheme managed by the regime.

Paravisini's proposal, he says, would be "thrown out in any court outside of Venezuela" because a company can not transfer all of its assets to a new entity without also transferring the liabilities.  "You can not escape debt in this way," said an executive consulted by the agency.

The report highlights that the regime's plans with the new corporation are not limited to absorbing PDVSA.

You may be interested  Auction: Court extends "agony" of Citgo until December

Paravisino's proposal includes transferring the assets of the electricity company Corpoelec, the coal producer Carbozulia and the petrochemicals manufacturer Pequiven to the new corporation .

The report also reports that a "presidential palace official" confirmed the "internal discussion" about the creation of the new company to replace PDVSA, and that the decision "requires the approval" of Maduro, of the first fighter, Cilia Flores, of Diosdado Cabello and Tarek El Aissami.

"The armed forces, which already have a presence in the industry through the oil, gas and mining company Camimpeg, led by the military, will also play an important role in this decision, " the palace official told Argus.

The dissolution of PDVSA would be one of the constitutional reforms that the dictatorship wants to approve in the constituent assembly before January 10, 2019, when the period of Nicolás Maduro ends to initiate the one granted by the National Electoral Council, after the illegitimate reelection of May 20.