WILLEMSTAD – A scathing critique has been issued by Cartera de Inversiones Venezolanas, C.A. (“Cartera”) regarding the recent report filed by court-appointed receivers in the ongoing Banco del Orinoco N.V. (BdO) case. Dated December 5, 2024, the commentary highlights critical disagreements over the receivers' handling of the matter, particularly concerning the securities portfolio and its implications for creditors.
In a statement signed by Víctor José de Jesús Vargas Irausquín, President of Cartera de Inversiones, the firm outlined 12 key points of contention. Central to their objections is the receivers' alleged failure to honor agreements outlined in the Memorandum of Understanding (MOU), which explicitly excluded BdO’s securities portfolio from creditor compensation plans. According to Cartera, the receivers have disproportionately focused on the portfolio, ignoring the adverse economic and legal conditions immobilizing these assets.
Key Concerns Raised
Deviation from the MOU: Cartera asserts that the receivers’ focus on the BdO securities portfolio is irrelevant to creditors as it was excluded from the compensation plan. The portfolio remains inaccessible due to sanctions, including those imposed by the U.S. Office of Foreign Assets Control (OFAC), and other adverse conditions.
Impact on Creditors: Cartera warns that the receivers' actions jeopardize the interests of creditors, the majority of whom are Venezuelan citizens. Many face obstacles in accessing U.S.-based banking services, complicating their ability to recover funds through traditional mechanisms.
Legal Allegations: The receivers have been accused of withdrawing preliminary recognition of claims linked to Cartera-affiliated creditors without substantive evidence. Cartera questions the receivers' legal basis for such decisions and cautions against unfounded allegations that could erode creditor confidence.
Call for Transparency: The firm underscores the importance of clarity and adherence to the agreed composition plan, emphasizing that equitable treatment of all creditors should remain a priority. It argues that a prolonged legal battle would harm creditors and primarily benefit attorneys.
A Plea for Constructive Resolution
Cartera acknowledges that the composition plan may require refinement but insists it remains the only viable path forward. The firm calls on all stakeholders, including the receivers and the court, to work collaboratively toward a fair resolution that avoids protracted litigation.
Failure to approve the proposed plan, Cartera warns, risks prolonging uncertainty and jeopardizing the financial well-being of all involved. The statement ends with a strong appeal for transparency, fairness, and prioritization of creditors' interests.
The BdO case, one of the most high-profile bankruptcy proceedings in Curaçao, continues to draw significant scrutiny as stakeholders navigate a complex landscape of sanctions, legal disputes, and financial recovery efforts.