Venezuela Creditor Group Expands Ahead of Debt Restructuring

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Or sign-in if you have an account.(Bloomberg) — A group of Venezuela bondholders is adding new members as it positions for long-awaited debt talks over what could be the biggest sovereign restructuring in more than a decade.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountMore than 15 funds have joined the Venezuela Creditor Committee since the US captured former president Nicolás Maduro in early January, according to a person familiar with the matter, boosting the group’s ranks as investors bet warming relations between Caracas and Washington could pave the way for restructuring negotiations. The person declined to say how many are presently in the group.Committee representatives are in talks with additional investors interested in joining, including hedge funds in the US and the UK, as they seek to amass holdings of as much as half of Venezuela’s roughly $60 billion in outstanding international bonds, according to people familiar with the matter. While the committee declined to disclose its current holdings, it was estimated to control more than $10 billion of defaulted sovereign and state oil company debt as of 2024.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe restructuring effort has been delayed as Venezuela grapples with the aftermath of two catastrophic earthquakes that killed more than 5,000 people and left tens of thousands injured. Even so, Economic Vice President Calixto Ortega said earlier this month the government expects to release a roadmap “in the next few weeks.” An initial assessment of the debt had originally been expected before the end of June.Venezuelan bonds have rallied more than 60% this year following Maduro’s capture, supported by US efforts to restore ties with the South American oil producer and boost its energy output. Sovereign notes due in 2027, among the country’s most liquid, trade near 50 cents on the dollar, roughly in line with many investors’ estimates of recovery value.The creditor group was formed shortly after Venezuela defaulted on its debt in 2017. Its members include Morgan Stanley Investment Management, Grantham, Mayo, Van Otterloo & Co. LLC, among others. Founding member Greylock Capital Management has stepped back from the steering committee while remaining a member of the broader creditor group, according to people familiar with the matter. Reuters previously reported on Greylock stepping back.Through their legal counsel Orrick, Herrington & Sutcliffe LLP, the group said the steering committee, which guides its strategy and includes about a dozen funds, has remained largely unchanged since January even as the broader creditor group has continued to add members. Greylock and Houlihan Lokey, the financial adviser for creditors, declined to comment. This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.