Venezuelan State Energy Company Defaults

[GatoGordo]

A Venezuelan state enterprise defaulted this week, after months of speculation the government in Caracas could struggle to make debt repayments.

Puebla, Mexico, November 10, 2017 (venezuelanalysis.com) – A Venezuelan state enterprise defaulted this week, after months of speculation the government in Caracas could struggle to make debt repayments.

State-owned energy utility Corpoelec has defaulted on a bond more than US$650 million, according to Reuters. The news agency cited a statement from the bond’s trustee, Wilmington Trust.

“The issuer’s failure to pay interest on the notes when due on October 10, 2017 constitutes a default under the indenture,” Wilmington reportedly stated in notice posted on the Luxembourg stock exchange.

Wilmington didn’t provide further details, while the Venezuelan government is yet to publicly comment on the matter.

President Nicolas Maduro had previously announced plans to restructure some of his government’s debt, with talks with investors set to take place on Monday.

If confirmed, the default won’t automatically trigger further defaults, and according to experts* any lawsuit stemming from the payment failure would likely be directed at Corpoelec – not the government itself.

Maduro has long dismissed speculation his government could itself be facing default.

https://venezuelanalysis.com/news/13498 (Venezuela Analysis is one of several Chavista propaganda outlets)

*Corpoelec is Venezuela's state electricity company. The "experts" who are unnamed in this puff piece are Chavista spokespersons... the same experts who insisted that Chavismo would always pay their debts, never default, and that there is plenty of money to prop up the regime.

[IAmTheNight]

1. Isn't VenAnalysis also SUPER-chavista?

For them to report on this must really hurt them... But I wouldn't be surprised if they blame the typical people that usually hardcore communists blame for any leftist regime's problems, like the US, CIA, etc.

[GatoGordo]

2. TeleSur and Venezuela Analysis get the lions share of their operating income from Chavismo

TeleSur has a "working relationship" (cross sharing opinion/analysis and "alternative news" ) with Russia Today.

Venezuela Analysis hires hard core Stalinist writers (ie: Joe Emersberger, and Ryan Mallett-Outtrim, who report about Venezuela from the safe confines of Canada and Mexico, respectively!) who gush about the wonders of Venezuela without ever having set foot there.