Submitted by Julieanne Geiger via OilPrice.com,
Venezuela’s PDVSA is in the hot seat today, with only one business day left for investors to take or leave its $5.3 billion 2017 bond proposal to push new notes back into 2020.
The likelihood of investors accepting this deal depends on how flexible the floundering Venezuelan oil company is at the hypothetical negotiating table in the final hours, according to two analysts.
‘If the swap doesn’t happen, they’re in big trouble for next year,” said Francisco Monaldi, Latin American energy policy fellow at the Baker Institute for Public Policy. “I think they’re really worried about that.” Monaldi added that PDVSA was hoping that the swap – along with oil prices – would rescue it from the precarious position it is now in, but neither remedy is looking too hopeful at this point.
Raul Gallegos, Control Risks senior analyst, said of the swap deal that the initial terms were not enough to lure investors, and that the adjusted terms were not ‘doing much for investors’ either, adding that if oil prices ticked up a bit, it might be enough to get them through next year.
This post was published at Zero Hedge on Oct 17, 2016.
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