the long-awaited negotiations over what could become the largest sovereign debt restructuring in more than a decade.
More than 15 investment funds have joined the Venezuela Creditors Committee since the United States captured former President Nicolás Maduro in early January, according to a person familiar with the matter. The arrival of new investors has strengthened the group as markets increasingly expect that closer ties between Caracas and Washington will pave the way for restructuring talks. The source declined to disclose the committee’s current membership.
Committee representatives are also holding discussions with additional investors interested in joining, including hedge funds from the United States and the United Kingdom. The group aims to represent up to half of Venezuela’s nearly US$60 billion in outstanding international bonds, according to people familiar with the negotiations. Although the committee did not disclose the size of its current holdings, estimates in 2024 indicated that it controlled more than US$10 billion in defaulted debt issued by both the Venezuelan government and the state-owned oil company.
The restructuring process has slowed because of the aftermath of the two devastating earthquakes that claimed more than 5,000 lives and left tens of thousands injured across Venezuela. Even so, Vice President of the Economy Calixto Ortega said earlier this month that the government expects to present a roadmap “in the coming weeks.” Authorities had originally planned to complete the preliminary debt assessment by the end of June.
Venezuelan bonds have gained more than 60% this year following Maduro’s capture. The rally has reflected U.S. efforts to restore relations with the South American oil producer and increase its energy output. The country’s highly liquid 2027 sovereign bonds are trading at about 50 cents on the dollar, a level that many investors consider close to their expected recovery value.
Creditors formed the group shortly after Venezuela defaulted on its debt in 2017. Its members include Morgan Stanley Investment Management, Grantham, Mayo, Van Otterloo & Co. LLC (GMO), and other major investment firms.
Greylock Capital Management, one of the committee’s founding members, has stepped down from the steering committee but remains part of the broader creditors’ group, according to people familiar with the matter.
Through its legal adviser, Orrick, Herrington & Sutcliffe LLP, the group said the steering committee—which sets the group’s strategy and includes about a dozen investment funds—has remained largely unchanged since January, while the broader creditors’ group continues to welcome new members. Greylock and Houlihan Lokey, the creditors’ financial adviser, declined to comment.
