Venezuela's distressed debt may draw multiple creditors

Venezuela has been in default since 2017 with about $60 billion in defaulted bonds and roughly $150–$170 billion in total external claims; creditors and arbitration award holders are pressing legal claims, with Citgo/PDV Holding central to recovery efforts.

The toppling of President Nicolas Maduro has brought Venezuela's long-running debt crisis into focus. The country defaulted in late 2017 after missing payments on government and PDVSA bonds. Accrued interest, arbitration awards and other liabilities have pushed total external claims far above the original bond face value. U.S. sanctions and nearly two decades without regular IMF engagement have complicated efforts to resolve the debt. Key points: - Venezuela has been in default since late 2017; analysts estimate about $60 billion in defaulted bonds and roughly $150–$170 billion in total external claims when arbitration awards and accrued interest are included. - Creditors include international bondholders and specialist distressed-debt investors, as well as companies with arbitration awards such as ConocoPhillips and Crystallex. - PDV Holding, the U.S.-based parent of Citgo, is central to U.S. legal proceedings, with roughly $19 billion in claims registered in Delaware related to recovery efforts. - U.S. sanctions and the country's long absence from IMF programs are cited as major obstacles to a formal, coordinated restructuring. Summary: Venezuela's default and accumulated legal awards have created a wide and overlapping set of claims against state and PDVSA-linked assets, increasing uncertainty about recoveries. Creditors are pursuing claims through U.S. courts and other venues, with legal actions focused on PDV Holding/Citgo while sanctions and lack of IMF engagement complicate negotiation prospects. The timing and structure of any formal debt workout remain undetermined at this time.