When Chavez Seizes, Bondholders Profit

摘要

Venezuelan President Hugo Chavez says capitalism is "ruining the world." His actions tell a different story. Dollar-denominated bonds issued by FertiNitro, a joint venture operated by Koch Industries and state-run chemical company Pequiven, were trading at 68 ￠ on the dollar the day before Chavez nationalized the company in October 2010. Bondholders have argued that the seizure triggered a clause that requires the government to redeem the bonds for more than their face value.