Attachment Of Foreign Energy Company Assets Granted

On December 20, 2024 Justice Joel Cohen granted an order of attachment against a foreign energy company under CPLR § 6205 and the Foreign Sovereign Immunities Act (“FSIA”). The case is Mistyrise International Limited v. Corporacion Electrica Nacional S.A., Index No. 655219/2021.

Cohen had earlier entered a default judgment to Mistyrise International Limited (“MI”) in the amount of $24,466,630.49, against defendant Corporacion Eléctrica Nacional S.A. (“CEN”), a Venezuelan energy company. MI moved to attach certain Citibank accounts in which CEN had an interest alongside the Venezuelan Ministry of Finance. Cohen found that CEN met the definition of a “foreign state” under FSIA as required to support attachment under CPLR § 6205, and that none of the limitations upon attachment of “foreign state” assets set forth at 28 USC §1610 and incorporated by CPLR § 6205 applied to bar attachment:

MI seeks to attach funds traceable to the Citibank account registered to the Venezuelan Ministry of Finance used to make debt payments on behalf of Venezuela, including CEN’s obligations on the notes (see NYSCEF 35, 39). CEN expressly waived immunity from attachment in aid of execution in the indenture (see NYSCEF 5, § 9.10).

Accordingly, the funds are not immune from attachment under FSIA (see 28 USC § 1610[a][1]). . . .

Though the Citibank account MI seeks to attach is registered to the Ministry of Finance, not CEN, MI may still attach the funds because CEN has a beneficial interest in them.

Mistyrise International Limited, p. 2.

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions about judgment enforcement issues or attachments of property.