Venezuela Bondholders Haunted by Chavez-Era Legal Claims
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Bond investors wondering whether Venezuela President Nicolas Maduro will be able to scrounge up enough cash to repay them are starting to realize they’re not alone.
Last week, a Paris court ordered Venezuela to pay Gold Reserve Inc. $746 million to compensate the Spokane, Washington-based company for mining permits that were canceled in 2008 by then-President Hugo Chavez. If Venezuela fails to pay within 30 days and doesn’t appeal, the nation would violate debt agreements that require it to honor judgments exceeding $100 million, according to Barclays Plc.