[countrybama24]

I'm surprised the article did not mention the theory that they have not defaulted because of the numerous state-owned assets they possess abroad which could be seized by creditors.

"Caracas fears a default could open up claims to PdVSA assets, such as rigs, refineries and oil shipments. One target by creditors could be the company’s Houston-based subsidiary, Citgo Petroleum Corp., which has three U.S. refineries that receive hundreds of thousands of barrels of Venezuelan oil a day."

http://www.wsj.com/articles/in-decaying-venezuela-debts-get-...

[fovc]

How much are those assets worth? Wouldn't the bonds be worth more if these assets were that substantial?

[al_chemist]

Assets are worth more to Venezuela than anyone else is willing to pay. In case of defaulting, creditors can takeover those assets cheaper than they could buy them otherwise.

[slv77]

Citgo was stripped of value last year by issuing bonds to pay a large dividend back to Venezuela. It is now so encumbered with debt that any remaining equity value is nominal.

Part of the reason was due to various lawsuits related to assets of US companies that had been nationalized and also to repatriate funds to support government initiatives.