Venezuela Bondholders Face Day of Reckoning

  • Skepticism abounds about whether PDVSA will deliver cash
  • State-owned oil giant owes $842 million in principal Friday

How Venezuela Has Managed to Avoid Sinking Into Default

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It’s a make-or-break day for holders of Venezuelan debt.

State-owned oil company Petroleos de Venezuela SA has $842 million in principal due Friday, and skepticism abounds that it’ll be paid on time. The company and the government are already late on more than $500 million of interest they owed investors this month. But unlike those payments, this one comes with no grace period. One day late, and bondholders can cry default.