Who is being appointed as a financial adviser for Venezuela's debt?

A key group of holders of Venezuela's defaulted sovereign bonds is poised to appoint Houlihan Lokey as their financial adviser.

What is the estimated total external debt of Venezuela?

Venezuela's total external debt, including bonds and other obligations, is estimated to be between $150 billion and $170 billion.

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Adviser Tapped for Venezuela's Massive Debt Restructuring

Q: What complicates direct engagement with the Venezuelan government regarding debt talks?

U.S. sanctions currently prevent engagement with the Venezuelan government without a waiver or special license.

10 Feb

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Summary

Holders of Venezuela's defaulted sovereign bonds are nearing appointment of a financial adviser.
The nation's total external debt is estimated between $150 and $170 billion.
U.S. sanctions currently prevent engagement with Venezuela without special licenses.

Adviser Tapped for Venezuela's Massive Debt Restructuring

A significant group of holders of Venezuela's defaulted sovereign bonds is set to appoint Houlihan Lokey as their financial adviser. This development marks a potential step towards restructuring Venezuela's substantial external debt, estimated to be between $150 billion and $170 billion. The nation and its state oil company, PDVSA, defaulted on approximately $60 billion in bonds in 2017.

The appointment follows renewed hopes for debt restructuring talks, spurred by U.S. actions against President Nicolas Maduro in early January. However, U.S. sanctions currently pose a barrier to direct engagement with the Venezuelan government, necessitating waivers or special licenses for any discussions.