Venezuela Winning Bondholder Relief as 39% Accept PDVSA Swap
- Company agrees to exchange $2.8 billion of old bonds for new
- PDVSA had previously insisted on a minimum of $3.55 billion
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Petroleos de Venezuela SA, maneuvering to repay a ballooning debt load, said Monday that creditors holding $2.8 billion of bonds have agreed to extend maturities after weeks of tense negotiations that included dire warnings from Caracas of a possible financial collapse.
The deal, while far short of the $5.325 billion that PDVSA had been seeking to exchange, was still seen as significant enough to win the state-run oil giant the relief it needs to continue servicing its debts for the time being. Notes from the company and Venezuela’s government surged after the announcement.