Venezuela's government makes an offer to bondholders before the expiration
September 21, 2020
On Tuesday, September 15, the finance minister of Venezuela announced that the government plans to make a "conditional offer" to holders of its bonds as well as PDVSA's and Elecar's ones, that were defaulted in 2017.
The deal is supposed to eliminate statutory limitation provided for the bond agreement, that will be up soon. In exchange, bondholders have to accept not to sue the country or the companies and drop any current lawsuits.
In 2017, after the default, Venezuela intended to go through the restructuring process, which didn't happen because of the presidential crisis, with two rival candidates, Nicolas Maduro and Juan Guaido, claiming to be the country's rightful president. Recently, the situation worsened because of the US sanctions against Maduro’s administration.
The investors have to decide on the offer until October 13. Some of them intend to participate in negotiations and currently working on organizing the process under the leadership of IlliquidX.
Company — Venezuela
Full nameBolivarian Republic of Venezuela