• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 3 hours How to Create a Pandemic
  • 10 mins Which producers will shut in first?
  • 5 hours KSA taking Missiles from ?
  • 5 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 5 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 3 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 4 hours Trump eyes massive expulsion of suspected Chinese spies
  • 10 mins WE have a suicidal player in the energy industry
  • 33 mins Eight Billion Dollars Wasted on Nuclear Storage Plant
  • 5 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 19 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 20 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
The Biggest Threat To Western Oil Majors

The Biggest Threat To Western Oil Majors

In the modern era, western…

The Oil Price Rebound Won’t Last

The Oil Price Rebound Won’t Last

Both oil and stocks rallied…

PDVSA Bond Holders Prepare For Interest Payment

Venezuela PDVSA

A group of investors holding part of a secured US$2.5-billion bond issued by Venezuela’s PDVSA and maturing in 2020 are organizing ahead of an interest payment due to be made this Friday, according to sources who spoke to Bloomberg. The sources remained unnamed because of the private nature of the discussions.

PDVSA is due to pay a total US$107 million to its bondholders this Friday. The group, which includes Ashmore Group as the largest bondholder of the 2020 notes, is preparing for a possible disappointment given Venezuela’s near-empty foreign currency coffers. According to the sources, the bondholders have hired law firm White & Case to advise them on the matter.

What happens next would be interesting to watch because the bond is secured with a 50.1-percent interest in PDVSA’s U.S. business Citgo and if the company fails to make the interest payment, the bondholders will be free to enforce their first-priority lien on this collateral.

Bondholders are becoming impatient with Venezuela, after in November President Maduro announced the country will try to restructure some US$60 billion in debt to facilitate repayments amid the hard currency crisis.

Yet a report in the Financial Times from earlier this month said that data from the country’s central bank suggests Caracas stopped paying debt holders in September last year. According to this data, monthly foreign debt payments fell from several hundred million dollars to several tens of millions in fee payments.

If the government cannot service its foreign debt then it’s probably safe to assume that PDVSA is in no better condition with regard to its debt. However, the fact is that bondholders of PDVSA notes and of debt issued by local utility Elecar have received several payments after the debt restructuring announcement, the FT notes. These payments have been sporadic, to the tune of US$2.5 billion in total, but they have been made, which might offer a gleam of hope to the bondholders of the secured 2020 notes.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage




Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News