But an interesting thing about that PDVSA press release -- aside from the fact that it mentions Donald Trump (seriously, "PDVSA confirms its full solvency and capacity to meet its commitments, despite the economic war, unjustified imposition of sanctions by Donald Trump, and the sabotage, persecution and financial blockade to which the Republic and its institutions have been subjected by a significant portion of the international financial system as commanded by imperialism.")

30 October 2017

Well, no news is not necessarily good news.

No money has shown up despite PDVSA's statement on Friday that $842 million in prinicipal payment on the PDVSA 2020 had "already begun." But an interesting thing about that PDVSA press release -- aside from the fact that it mentions Donald Trump (seriously, "PDVSA confirms its full solvency and capacity to meet its commitments, despite the economic war, unjustified imposition of sanctions by Donald Trump, and the sabotage, persecution and financial blockade to which the Republic and its institutions have been subjected by a significant portion of the international financial system as commanded by imperialism.")  The blustery press release (which could still learn a few things about forgotten cold war language from the esoteric political prose of our friends in North Korea) says that "bank transfers have already begun for the payment of principal of PDVSA 2020 Bond for a total amound of USD 841.88 million to the accounts at J.P. Morgan bank." Here is the thing -- Delaware Trust is the paying agent on the PDVSA 2020, not JP Morgan(and as we were led to believe, Delaware Trust does not have accounts at JPMorgan).    So the day ends with that puzzle and no news from PDVSA, and no proof of life from Euroclear, the paying agent or final accounts that the PDVSA 2020 amortization which PDVSA said it had already begun paying on Friday has been made.  I suppose the fact that PDVSA hasn't taken down the press release that they paid is probably a good sign, if you were looking for some smidgen of a silver lining. As we noted this morning, so far, only the relatively puny $41 million PDVSA 37 coupon has shown up of the now $800 million in coupons owed -- now including the unpaid interest on the PDVSA 2020 (PDVSA only stated in their statement that they were paying the $842 million amortization, not the $143 million coupon) and also the $90 million in interest on the Goldman Sachs PDVSA 6% of 2022 (which  came due on October 28).  The other coupons at various stages in the 30 day tolling period are Electricidad de Caracas, PDVSA 27, Venezuela 19, Venezuela 24, Venezuela 25, Venezuela 26 and -- not to be forgotten -- Venezuela's Oil Indexed Obligations that came due on October 15. That $800 million is, of course, not including the $842 million due on the PDVSA 2020, for a total of $1.620 billion owed.  And on Thursday November 2, PDVSA will owe another $1.2 billion, with another $691 million coming due in November, for a total of $1.891 billion in US dollar bond payments (not including the $29.5 million due to Gold Reserve on the 10th). Please let me know if we can be of assistance.  The closing prices of the Venezuela/PDVSA matrix follow. Thanks for your continued readership and business.                                          -Russ