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Venezuela creditors demand payment on $1.5 billion defaulted bond - lawyer
Source: Reuters
BUSINESS NEWS DECEMBER 17, 2018 / 12:53 PM / UPDATED AN HOUR AGO
Exclusive: Venezuela creditors demand payment on $1.5 billion defaulted bond - lawyer
Brian Ellsworth
4 MIN READ
CARACAS (Reuters) - A group of creditors has demanded payment on $1.5 billion in defaulted Venezuelan bond, their lawyer said on Monday, kicking off a long-awaited showdown between creditors and the crisis-wracked OPEC nation.
President Nicolas Maduro’s government and state-owned companies owe nearly $8 billion in unpaid interest and principal following this year’s default on bonds amid a hyperinflationary collapse of the country’s once-wealthy socialist economy.
Five investment funds have demanded that Venezuela pay the principal and outstanding interest on its 2034 bond VE018389347=, said Mark Stancil of Washington-based law firm Robbins Russell, who represents the group. It is the first step in a potential legal campaign by creditors to recover their investments.
The decision could trigger similar efforts by investors holding $60 billion in outstanding bonds issued by Venezuela and state oil company PDVSA. That could pave the way for a creditor dispute similar to the one that roiled Argentina for a decade.
-snip-
Exclusive: Venezuela creditors demand payment on $1.5 billion defaulted bond - lawyer
Brian Ellsworth
4 MIN READ
CARACAS (Reuters) - A group of creditors has demanded payment on $1.5 billion in defaulted Venezuelan bond, their lawyer said on Monday, kicking off a long-awaited showdown between creditors and the crisis-wracked OPEC nation.
President Nicolas Maduro’s government and state-owned companies owe nearly $8 billion in unpaid interest and principal following this year’s default on bonds amid a hyperinflationary collapse of the country’s once-wealthy socialist economy.
Five investment funds have demanded that Venezuela pay the principal and outstanding interest on its 2034 bond VE018389347=, said Mark Stancil of Washington-based law firm Robbins Russell, who represents the group. It is the first step in a potential legal campaign by creditors to recover their investments.
The decision could trigger similar efforts by investors holding $60 billion in outstanding bonds issued by Venezuela and state oil company PDVSA. That could pave the way for a creditor dispute similar to the one that roiled Argentina for a decade.
-snip-
Read more: https://www.reuters.com/article/us-venezuela-bonds-exclusive/exclusive-venezuela-creditors-demand-payment-on-1-5-billion-defaulted-bond-lawyer-idUSKBN1OG1ZG