Venezuela opposition seeks to pay PDVSA bond interest to stave off creditors

• Venezuela’s National Assembly, led by opposition leader Juan Guaido, on Tuesday, authorized an interest payment on an overdue bond, in a bid to keep the country’s crown jewel overseas asset out of creditor's hands.
• The $71Mn interest payment will be paid on state oil company PDVSA’s 2020 bond, which is backed by shares in its subsidiary, U.S. refiner Citgo Petroleum. Failure to make the payment could prompt creditors to attempt to seize up to half of the shares in Citgo.
• Venezuelan President Nicolas Maduro’s government had remained current on the 2020 bond in order to avoid losing Citgo, even as it has fallen behind on more than $9Bn in payments on other debt issued by the government and by PDVSA.
• But the latest interest payment, due on April 27, remains outstanding. PDVSA has a 30-day grace period in which to make the payment before creditors can attempt to seize the shares.

 (Source: Reuters)