Bloomberg

A group of international investors holding Venezuelan bonds has chosen Houlihan Lokey as its financial advisor, according to people familiar with the matter, a key step as they prepare for a massive debt restructuring. By Bloomberg The Venezuelan Creditors Committee selected the US investment bank after an election process that lasted several weeks, sources said, adding that the parties have not yet signed a contract. The information was first reported by Reuters. Representatives for Houlihan Lokey and the committee did not immediately respond to requests for comment. The decision indicates that creditors are preparing to initiate negotiations with Venezuelan officials for about $60 billion in government and state-owned oil company bonds that have been in default since late 2017. That figure rises to about $100 billion if unpaid interest is included. Investors see an opportunity to be compensated following the US capture of Nicolás Maduro. Interim president Delcy Rodríguez, who has been working closely with the Donald Trump administration, said she is open to foreign capital, particularly in the oil sector. The bondholder committee, a group that includes Fidelity Management & Research Company LLC, Morgan Stanley Investment Management, and Greylock Capital Management, announced last month that it is ready to start talks to restructure the debt once it receives the corresponding authorization. However, US sanctions prohibit investors from interacting with Venezuelan officials, meaning the committee will need a license before discussions can begin. Other obstacles include potential legal challenges arising from Washington's lack of recognition of Rodríguez's authority. Still, Maduro's capture and the signal of a possible diplomatic rapprochement with the US have boosted the Venezuelan debt market. Sovereign bonds are trading near their highest levels since 2017, with the 2027 notes trading around 44 cents on the dollar. Current prices are "fair," according to UBS Global Wealth Management, and are in line with their estimated recovery values. The Venezuelan creditors committee also includes Grantham Mayo Van Otterloo & Co, LLC, Fidera Ltd, HBK Capital Management, Mangart Capital, T. Rowe Price Associates, Inc., and VR Advisory Services Ltd. Its legal representative is Orrick, Herrington & Sutcliffe LLP. If you want to receive this and other information on your cell phone, download Telegram, enter the link https://t.me/albertorodnews and click on +Unirme.