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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America
Message: Crystallex applied to the court for limited suspension of the PDVSA trial leading to the Citgo auction
Crystallex applied to the court for limited suspension of the PDVSA trial leading to the Citgo auction
By Maibort Petit
@maibortpetit
Crystallex International Corporation asked Judge Leonard P. Stark for a limited suspension of the proceedings against the Bolivarian Republic of Venezuela until January 10, 2019, according to a document presented to the court this Monday, November 26. The demand of the Canadian against the Venezuelan government would have led to the loss of Citgo, PDVSA's subsidiary in the United States that would be auctioned according to the procedural calendar in the coming months.
The letter asks the judge to suspend other proceedings that the Canadian company has against Petróleos de Venezuela, SA and PDV Holding, Inc. after a consent agreement with the defendant, Bolivarian Republic of Venezuela and the auditor Petróleos de Venezuela SA, with In order to give time to Crystallex and Venezuela to implement the agreement, in principle, they have reached to resolve their disputes.
Crystallex's agreement with Venezuela suspends for a period of time that the Canadian mining company retains control of Citgo as a mechanism to collect the debt for about USD 1,400 million as part of the compensation agreed by the international court for the expropriation of its assets by the government of the late Hugo Chávez.
According to the court document, the Venezuelan government would have paid an initial amount of 425 million dollars on November 23, 2018. And promised to pay the rest of the debt in installments until the beginning of 2021. If the money is not paid before January 10, 2019, Crystallex could resume the lawsuits.
The current action is an enforcement proceeding initiated in an effort to collect the arbitration award that Crystallex received from $ 1.2 billion (plus interest) against Venezuela. That award was confirmed as a judgment of the United States by the United States District Court for the District of Columbia on March 25, 2017, and that judgment was entered in this Delaware Court on June 19, 2017. Then, on August 14, 2017, Crystallex moved this Court to request a deed of attachment attached to execute against the shares of PDV Holding, Inc., a Delaware corporation whose shares were nominally owned by the Venezuelan subsidiary, PDVSA. In response,
On Friday, November 23, 2018, the Third Circuit maintained new procedures in this Action pending a decision on the consolidated appeals of PDVSA.
The attorneys say that the request for limited suspension is made in accordance with the Amended Settlement of the parties, which seeks an additional suspension of this Action, as well as the continuation of the stays in Crystallex I and Crystallex II. The limited stay of this Action is of particular importance since it is expected that PDVSA will seek to suspend its appeals after the public announcement of the Amended Agreement of Venezuela and Crystallex.
Posted by Maibort Petit at 9:45
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