Overview

• Peru’s Finance Ministry approved a debt-management operation and the issuance of up to $287.3 million in sovereign bonds to meet obligations tied to Petroperú’s state guarantee.
• The government is seeking to redefine the payment timetable for roughly $2.5 billion in Petroperú debt covered by the sovereign guarantee.
• David Tuesta says the Petroperú board ignored a coordinated restructuring plan that called for private capital and asset sales scheduled for January, noting that no assets have been sold.
• Tuesta describes a company under severe liquidity strain with about $2 billion in negative working capital and continuing difficulties at the Talara refinery that have led to successive refinancings.
• Congressman Wilson Soto asked the Energy and Mines Commission to summon Finance Minister Raúl Pérez Reyes and Petroperú board president Alejandro Narváez to report on the company’s finances and the bond issuance.