More creditors organize to collect big loan default prize from Maduro: Citgo
PDVSA’s Secured Creditors Organize Ahead of Payment
April 24, 2018, 4:37 PM CDT Updated on April 25, 2018, 11:38 AM CDT
Creditors holding secured bonds from Venezuela’s struggling state oil company are organizing ahead of an interest payment due Friday, according to people with knowledge of the matter.
The group of investors, which includes Ashmore Group Plc -- the largest reported holder of the $2.5 billion of notes due 2020 from Petroleos de Venezuela SA -- has tapped law firm White & Case LLP to advise them, said the people, who asked not to be identified because the matter is private. It’s unclear how much of the debt the creditor group holds. Representatives for Ashmore and White & Case declined to comment.
The group is preparing for the possibility that PDVSA fails to make its $107 million payment due Friday, which after a grace period expires would entitle them to start the process to enforce their collateral rights. The bonds are backed by a first-priority lien on a 50.1 percent stake in Citgo Holding Inc., PDVSA’s U.S. refining arm. Venezuela and its state-owned companies are behind on about $3.4 billion of obligations amid a severe shortage of hard currency and punishing international sanctions that have limited the country’s ability to find financing.
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https://www.bloomberg.com/news/articles/2018-04-24/pdvsa-s-secured-creditors-are-said-to-organize-ahead-of-payment