Venezuela Seeks Cheaper Advisor for Debt Deal

A new contender is stepping into the ring to manage Venezuela’s massive debt talks. The investment bank Lazard has sent a late offer, aiming to replace the current adviser, Centerview Partners. The goal is to lower the fees while handling one of the biggest sovereign debt restructurings on record. Lazard’s proposal carries a fee of $25 million, far less than the roughly $150 million that Centerview was negotiating with the Venezuelan government. The offer came after a letter sent to interim President Delcy Rodriguez on Friday, according to Bloomberg News. The details of the deal remain unverified by Reuters and the parties involved have not yet responded. In May, Caracas announced it had hired Centerview to guide the restructuring of its own debt and that of state oil company PDVSA. The U. S. -based firm had discussed a monthly retainer of $750, 000 and a success fee of 0. 1% on the restructured debt, which could total between $150 million and $200 million. Critics have questioned whether the appointment of Centerview followed a fair competitive process.Venezuela’s default is among the largest worldwide. The country and PDVSA together owe about $60 billion in bonds that have not been paid. When all debts, including court awards and interest, are added up, the total could surpass $150 billion. The new adviser will need to craft a strategy for paying back creditors and decide how much debt will be written down. These choices are vital for the country’s future economic health. The move to bring in Lazard reflects a broader effort by Venezuela to streamline its financial negotiations and reduce costs. Whether the new proposal will win approval remains to be seen, but it signals a shift in how the nation is handling its financial crisis.