Venezuela’s PDVSA misses $404 million payments on bonds

Petróleos de Venezuela SA missed $404 million in coupon payments on three of its bonds according to J.P. Morgan Chase & Co., highlighting the continued struggles of the Venezuelan state oil company.

The Venezuelan company failed to make payments last week on bonds maturing in 2021, 2024 and 2035.

PDVSA now is in technical default and will have a 30-day grace period to cure the default if it makes the payments, analysts said.

“We still believe PDVSA will make these payments,” the J.P. Morgan analysts said. They pointed to Venezuela’s reported $10.9 billion international reserves as of Nov. 17 and the company’s recent efforts to reduce its cash drain by extending the term of some bonds using a debt swap.

The missed payments hit a nerve among investors because many are worried Venezuela, whose oil industry constitutes the lifeblood of its struggling economy, might be on the verge of default.