Venezuela Workout Pits Hot-Headed Newcomers Against Veterans

As the political crisis in Venezuela rumbles on, a number of creditors are squaring up in what promises to be one of the most complicated debt restructurings in history, the Financial Times reported. What will make a workout so tricky to resolve is not just the amount of IOUs sitting on the balance sheet of the South American nation, the fourth-largest economy in the region, but the diversity of its creditor base. In recent months, some aggrieved lenders have filed lawsuits against the government and the state-owned oil company, PDVSA, sparking some unease from the rest. The split between creditors is partly contractual — different breeds of investors have varying types of claims — and partly generational, said Mitu Gulati, a law professor at Duke University in Durham, North Carolina, and an expert on sovereign debt. Read more