Venezuela’s government announced late
Wednesday that it settled with Canadian mining company Gold Reserve (GDRZF),
and will have a controlling stake in a new $5 billion joint venture. Gold
Reserves wanted $750 million including interest for the expropriation of its
assets under the Hugo Chavez administration in 2008. The government is fighting
a handful of related cases, via the International Center for Settlement of
Investment Disputes (ICSID), that seek $3.2 billion in restitution with
interest. The government’s bond covenants require that it pay arbitrated awards
of $100 million or more within 30 days to avoid triggering defaults. More… 
Friday, February 26, 2016
Venezuela’s $5 Billion Gold Deal: Progress On Default ?
Venezuela’s government announced late
Wednesday that it settled with Canadian mining company Gold Reserve (GDRZF),
and will have a controlling stake in a new $5 billion joint venture. Gold
Reserves wanted $750 million including interest for the expropriation of its
assets under the Hugo Chavez administration in 2008. The government is fighting
a handful of related cases, via the International Center for Settlement of
Investment Disputes (ICSID), that seek $3.2 billion in restitution with
interest. The government’s bond covenants require that it pay arbitrated awards
of $100 million or more within 30 days to avoid triggering defaults. More… 
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