CARACAS, Venezuela (AP) — A trust representing holders of Venezuelan bonds has gone to New York federal court demanding payment on more than $34 million in unpaid debt.
The lawsuit filed Tuesday is believed to be the first by a long list of investors not being paid by Venezuela's socialist government as it confronts a cash crunch worsened by hyperinflation and collapsing oil production.
It was filed by Florida-registered Casa Express Corp., which says it represents investors in dollar-denominated bonds issued in 1998 and 2002.
Last year Venezuela stopped paying interest on $65 billion in bonds issued by the government and state oil company PDVSA. Creditors had been reluctant to sue for fear of racking up huge legal fees with no repayment scenario in sight as long as President Nicolas Maduro remains in power.
