State oil firm PDVSA has issued at least US$310m in debt to companies including General Electric as it negotiates private issuances to pay off its suppliers, industry sources said, stretching the finances of a company that bondholders already worry is on its way to default. The securities are not bonds but offer rights similar to those enjoyed by bondholders, and at least one issue offers dispute resolution via the Paris-based International Chamber of Commerce, according to one of the three sources, who cited a term sheet. This means that if PDVSA defaults, investors holding their bonds may find that there are more creditors competing for compensation than they had originally expected.
展开▼
