Venezuela’s Corpoelec defaults on 8˝% notes due 2018, trustee says

New York, Nov. 10 – Corporacion Electrica Nacional (Corpoelec) has defaulted on its $650 million of 8˝% notes due 2018 by failing to pay interest within the grace period, according to trustee Wilmington Trust, NA.

Interest on the notes was due to be paid on Oct. 10, Wilmington said in a notice of default.

However the paying agent for the notes did not receive funds to make the payment by Nov. 9, the end of the grace period.

Because an event of default has occurred, the principal and accrued interest on the notes can be declared immediately payable by holders of 25% or more of the notes.

In addition, holders of 50% or more of the notes can direct the trustee to use any remedies available, Wilmington said.

The notes were originally issued by C.A. La Electricidad de Caracas and assumed by Corpoelec in 2012 after a merger.

Corpoelec is the Venezuelan electric utility.

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