Archive for March 17th, 2006

PDVSA to buyback all of its outstanding bonds, no more transparency at the company

March 17, 2006

PDVSA announced this week that it will call all of its outstanding bonds according to the call features in them on April 10th. This is being done so as not to have to file the company’s financial statements with the Securities and Exchange Commission. This is being ostensibly done to protect the country’ sovereignty. However, given that PDVSA no longer holds its yearly shareholder meeting or distribute its financials on time, other than the SEC filing which has been substantially delayedin 2002,2003 and 2004, it means that there will be no transparency to the company’s financials , let alone its operations. PDVSA had promised to deliver the 2004 financials to the SEC by the end of February (they were due on June 30th. 2005), but once again it failed to deliver them on time.

One of Hugo Chavez’ big campaign themes was that the “people” needed to know what was going on at the oil company. So much for transparency and the people under the revolution!