Venezuela Creditor Committee Signals Readiness to Negotiate ‘Comprehensive and Fair’ Debt Restructuring; Says Workout Will Accelerate International Financing

The Venezuela Creditor Committee, or VCC, today issued a statement saying it stands ready to initiate a negotiated debt restructuring process to resolve Caracas’ multi-billion dollar debt obligations. Law firm Orrick advises the VCC. The international investor group consists of GMO, Greylock Capital, Fidelity Management & Research Co. LLC, Fidera, HBK Capital Management, Mangart Capital, Morgan Stanley Investment Management, T. Rowe Price Associates Inc., and VR Advisory Services Ltd. The VCC said it recognizes that the restoration of access to international private capital will be critical to Venezuela’s social and economic recovery, including in the oil sector. In that regard, the VCC believes that a “comprehensive and fair resolution of the public debt restructuring, achieved through a negotiated process, will accelerate financing across all sectors of the Venezuelan economy and the promote long-term prosperity of its society.” Venezuela’s bonds rose around 10 points this week after U.S. Armed Forces on Jan. 3 abducted and arrested President Nicolas Maduro. The sovereign 9.25% 2027 notes are at 42/43 today, according to Solve. Venezuela defaulted on its debt in 2017.