Mark A. Walker and Richard J. Cooper, from Guggenheim Securities and Cleary Gottlieb respectively, propose a framework for the future renegotiation of Venezuela’s external financial obligations which, according the authors, amount to $155 billion.

The paper, published in Cleary Gottlieb’s Emerging Markets Restructuring Journal, introduces an analysis of the differences between restructuring the sovereign and PDVSA’s debt and proposes an alternative to the issuance of an executive order to protect Venezuela’a external assets. According to the authors, the best way to tackle the issue would be with a “Local Reorganization Law Solution” recognized by the United States and modeled after the US’ chapter 9. Walker and Cooper argue that this method would protect Venezuela’s assets more reliably than an executive order, while paving the way for a friendly restructuring of the country’s obligations. You can read the full report at–a-path-forward-pdf.pdf?h=16&thn=1&w=16.ashx&hash=6FAD5288D01C063BAEA8F4E9DA59D870D867D0EC

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