Today at 11am, the ISDA Determinations Committee sits down to decide whether an event of default has occurred due to the delayed principal payment on the Petroleos de Venezuela SA, or PDVSA, bond that matured Nov. 2, in the process triggering PDVSA (and perhaps Venezuela) CDS, and officially declaring Venezuela in default.
We won't have to wait that long: moments ago, Wilmington Trust, the Trustee of the 8.5% bonds due 2018, issued by Corpoelec, Venezuela's electricity company, declared that the missed interest payment originally due October 10, and whose 30 day grace period expired on November 9, and for which no pament was sent or received, officially constitutes an event of default.
From Bloomberg:
From the statement:
Wilmington Trust, National Association is communicating the following to you in its capacity as successor trustee (the “Trustee”) to The Bank of New York, as trustee, under the Indenture dated as of April 10, 2008 (the “Indenture”) for the $650,000,000 8.50% Senior Notes due 2018 (the “Notes”) of C.A. La Electricidad de Caracas (the “Issuer”). In a letter to the Trustee and various other parties dated November 30, 2012, National Electricity Corporation, S.A. (CORPOELEC) advised that it is the successor by merger to the Issuer. Capitalized terms used herein but not defined herein shall have the respective meanings set forth in the Indenture.
Please be advised that the Paying Agent with respect to the Notes has advised the Trustee that the payment of interest on the Notes that was due on October 10, 2017 was not received by the Paying Agent. The Issuer’s failure to pay interest on the Notes when due on October 10, 2017 constitutes a Default under the Indenture. The Paying Agent has further notified the Trustee that the interest payment was not received by November 9, 2017.
The Issuer’s failure to pay the overdue interest on the Notes on or before November 9, 2017 constitutes an Event of Default under Section 5.1(ii) of the Indenture. Pursuant to Section 5.1(b) of the Indenture, if an Event of Default shall occur and be continuing and has not been waived, the Holders of at least 25% in principal amount of Outstanding Notes may declare the principal of, and premium, if any, accrued interest and Additional Amounts, if any, on all the Notes to be due and payable by notice in writing to the Issuer and the Trustee specifying the Event of Default and that such notice is a “notice of acceleration”, and the same shall become immediately due and payable.
It is unclear if this formal default declaration makes today's ISDA determinations committee decision moot, however it now looks quite certain that Monday's meeting between creditors and the country's vice president and chief debt negotiatior, who also happens to be a US-sanctioned drug kingpin, will no longer be necessary.
Today's news will not come as a surprise to CDS holders, who had already priced in a 99.99% probability of default in 5 years.
The full statement is below:
imf hit
Wilmington Trust, National Association is communicating the following to you in its capacity as successor trustee (the “Trustee”) to The Bank of New York, as trustee, under the Indenture dated as of April 10, 2008 (the “Indenture”) for the $650,000,000 8.50% Senior Notes due 2018 (the “Notes”) of C.A. La Electricidad de Caracas (the “Issuer”). In a letter to the Trustee and various other parties dated November 30, 2012, National Electricity Corporation, S.A. (CORPOELEC) advised that it is the successor by merger to the Issuer. Capitalized terms used herein but not defined herein shall have the respective meanings set forth in the Indenture.
money for nothing..and the countries resources for free..
evil is as evil does and these reptilian banksters are evil incarnate.
Socialism..........when will they learn?
parasitism
look across Europe..socialism seems to work there..
lets make no mistake, this is a jew banskter hit,,
Fuck ISDA, IMF and the BIS in no particular order
It's so official when it is written in legalese.
Like it's real money or something.
LongTP
They just didn't have the "smart" people running their socialism. The Bern, Hillary, Dear Leader Obama. They would have made it paradise.
VE defaulted.
Now WW3 can begin in the Middle East.
Oil prices have been kept down to crush VE.
VE will not give in though.
you forgot the "Sarc"
That was funny!!!
Socialist thieves and thugs are no better than banksters.
Wilmington Trust, National Association is communicating the following to you in its capacity as successor trustee (the “Trustee”) to The Bank of New York, as trustee, under the Indenture dated as of April 10, 2008 (the “Indenture”) for the $650,000,000 8.50% Senior Notes due 2018 (the “Notes”) of C.A. La Electricidad de Caracas (the “Issuer”). In a letter to the Trustee and various other parties dated November 30, 2012, National Electricity Corporation, S.A. (CORPOELEC) advised that it is the successor by merger to the Issuer. Capitalized terms used herein but not defined herein shall have the respective meanings set forth in the Indenture.
how many times you have to read this to finally figure the reptilian banksters hooked them with usury?
What? You thought $650,000,000 went to build or maintain needed infrastructure?
It's all in the pockets of chavista thugs while people suffer.
Motherfuckers are made for each other.
still doesn't negate the fact that the jew bankers knew exactly what they were doing.. it is the same fvkin playbook played over and over around the world..
borrow from the imf the digits at interest and hand over your country to the parasites..
money for nothing and countries for free
too bad the people end up starving and killing each other for a roll of toilet paper but of course if one was to pay attention this is the end game they crave..
the blood of innocents sacrificed on the alter to Moloch..
get it yet? this is how evil works..
" how many times you have to read this to finally figure the reptilian banksters hooked them with usury?"
I'd be thrilled if all my credit card company was 8.5% interest.
29.9%? Now THAT'S usury.
your credit sux..i can borrow thousands interest free for 2 years..
If one understands that socialism is not a share-the-wealth program, but is in reality a method to consolidate and control the wealth, then the seeming paradox of super-rich men promoting socialism becomes no paradox at all. Instead, it becomes logical, even the perfect tool of power-seeking megalomaniacs,” explained the late Gary Allen. “Communism or more accurately, socialism, is not a movement of the downtrodden masses, but of the economic elite.”
LOL - Poor little Maduro and his cronies were "forced" to take IMF money.
Grow up.
stupid fvk.. read the confessions of an economic hitman and then get back to me..
Maduro ain't no Chavez.... he's just the fall guy.
Indeed, but good luck trying to collect on that CDS etc.
When fraud is the status quo, possession is the fucking law.
if you have the guns to back it up.. Venezuela is probably the next country we must invade to liberate from all the chaos.
So reposses the country?
Maybe they can borrow money from somebody else to pay us back.
maybe they should be allowed to float fiat back the other way..
just saying
wtf does a country have to borrow from the jews?
how many more dead will it t take before these reptilians are satisfied?
i guess the 100 million from last century is just the opening act..
oh yea predatory bankers are the problem
all wars are banker wars and make no mistake..what is happening in vens and around the world is the bankers on the full court press.
money from nothing for something
I was at a party in Caracas several years ago. A Venezuelan told me the following joke:
"When God created the world, he was near the end of the sixth day when he realized he had a big pile of gold, silver, oil, copper and excellent farmland left to distribute. Being tired, he dumped it all down in one place. Upon reflection he decided that was too much good stuff to put in one location so, to compensate, he populated the region with Venezuelans."
The Greeks will float them a few Euro until payday...
Maybe the FED will loan them their printing press...
Maduro should take a loan on his 401(k).
Dow 30,000.
I heard PDVSA wrote them a check, but just asked it be held until the end of the month.
this is the last stage of socialism
Who in their right mind keeps loaning money to Venezuela? Fucking morons are now left with a bag of shit.
On the other hand, Maduro and his cronies are done - unless the Ruskies or the Chinks step in.
Greece?
Who? Fvckers who think Uncle Scam will bail them out 'cause they're too big to fail. That's who.
Investors seeking yield, that's who. Bonds yielding near-zero aren't good investments from their POV. They want income, dammit.
Time for the US to meddle and interfere with a good ole fashioned neocon regime change.
Where is Vicki Nuland and Geoffrey Pyatt when you need them? (sarc)
Pretty sure an 8.5% bond was going to default at some point. Wonder what the CDS picture looks like? Any chance this could be a snowflake that starts an avalanche?
Debt is an income-producing asset to those who own it. Default makes that asset, and the income derived from it, go poof. Other debt instruments - also income-producing assets - are leveraged off the original [sovereign] debt. They go poof too. Bank stocks take a hit, as would any other company had suddenly had a big hole blown in its revenues.
Correct, but then again, you are assuming an honest "mark to market" accounting model and just rule of law.
I don't think we have that anywhere anymore...
We should have as much courage.........
Wonder how many side bets there were....anyone here try to get in on the CDS racket?
Who pays those off? Who do those folks owe money to? When does this train leave the station?
One of these days some trivial miss on a measley $650M bond coulld cause some real headaches.
Is the Saudi Prince money wallpapering this default?
can somebody give me a good place to go to to buy bitcoin cash? Damn it seems so complicated..And I read that if you owned bitcoin, you own bitcoin cash too? So if bitcoin went down and botcoin cash went up, you broke even? Everything is so confusing...
Cryptopia
Don't buy at these prices...
bitcoin cash is $805 but they want $250 as a fee? That is much more than paying over spot price for gold...wtf?
venezuela
If it's not Bitcoin, it's a shitcoin.