Blanca Vera AZAF October 21, 2016 - 12:01 am
All contracts signed by Petroleos de Venezuela and bondholders for different emissions clearly specify that are signed under the law of the State of New York and shall be payable in US currency, so the possibility to be redeemed in local currency due concern in the financial sector to the consequences that would entail, sources linked to the sector.
Yesterday was introduced an appeal to the Supreme Court, where a decision on the possibility that Petroleos de Venezuela can pay bonds issued in local currency requested. This motion was made by a corporation called XT 46, according to sources close to the TSJ.
Minister of Petroleum and Mining and president of PDVSA, Eulogio del Pino, wrote in his Twitter account: "So right statelessness develops economic warfare and sabotage the swap."
However, in the international market two theories about this resource are handled, the sources said. The first is that behind the legal action could be Pdvsa to create a climate of alarm among bondholders 2017 and forcing them to sell. The second is that a third place this legal play to the roles were affected and buy them at a much lower price.
The only way that these payments can be made in another currency is that it has the consent of 100% of the holders of the papers, as defined textually signed documents in each of emissions, the sources said. The exception is the 2016 Pdvsa, whose contract is not as specific, even though it does say that will be paid in dollars. Additionally, this title is not registered under the law of the State of New York, but also indicates that it is under the rules of the Venezuelan state, as seen in the text.
60% of PDVSA 2016 bond is held by the Pension Fund state oil so that the remaining itself is in the international market does not exceed 300 million dollars. Hence a source consulted in the United States said that it seems unlikely that this amount of money Pdvsa wants to get involved in an international legal problem.
Another Wall Street source said the new episode with the TSJ is part of an aggressive strategy designed in recent days by Pdvsa. "Somehow the company president Eulogio del Pino said in an interview that" were studying all the options regarding the exchange. " What we do is dangerous for the company is that from the beginning not said those holders who will not participate in the exchange could be subject to a default. "If they had since clear rules from the beginning, the game would have been much more transparent," he added.
Another source consulted, which asked not to mention his name said that if really this is a "play" Pdvsa to make investors change their Pdvsa 2017N 2017 and the new 2020, can be dangerous. He explained that threaten the Supreme Court can make the holders of the Credit Swaps Defaul instruments, which function as insurance against a possible default- want to activate the default clause so they can try to collect the oil the value of the instrument.
Some say that this new episode with the TSJ is part of an aggressive strategy designed by Pdvsa | Photo: Omar Veliz
The president said the oil was sabotage under the swap. There is also speculation that there are interests of prices down