Bloomberg: PDVSA Debt Swap Plan Gets Early Thumbs Down From Investors

pdvsa-fallThe 50.1 percent stake in Citgo means a change of control could be triggered that would make other debt due before the new bond, with equity holders standing at the back of the line to get paid, according to Russ Dallen, a managing partner at Caracas Capital.

“PDVSA needed to get this right, and they didn’t,” Dallen said in a note to investors. “What this means for PDVSA is that default is ever more likely.”

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