A key group of holders of Venezuela’s defaulted sovereign bonds is poised to appoint Houlihan Lokey as its financial adviser, two sources familiar with the matter told Reuters.
Venezuela’s government and state oil company PDVSA defaulted in 2017 on bonds with a combined face value of around $60 billion. Total external debt, including other obligations, bilateral loans and arbitration awards, is estimated at $150 billion to $170 billion, according to estimates cited by Reuters.
The seizure of President Nicolas Maduro by the United States in early January has raised expectations that one of the world’s largest and most complex sovereign debt restructurings could begin to take shape, though U.S. sanctions still restrict engagement with Venezuelan authorities without a waiver or special license.
The Venezuela Creditor Committee said on January 9 it was ready to start restructuring talks once authorization is granted. Houlihan Lokey did not immediately respond to a request for comment, and the committee’s legal adviser Orrick declined to comment, Reuters reported.
Members of the committee include Grantham Mayo Van Otterloo, Greylock Capital Management, Fidelity Management & Research, Fidera, HBK Capital Management, Mangart Capital, Morgan Stanley Investment Management, T. Rowe Price Associates and VR Advisory Services, according to the group’s January statement cited by Reuters.
