Nelson Mullins Partner John Haley was quoted in an S&P Global article discussing Venezuela’s process on restructuring its sovereign and oil company debt to boost investor confidence.

In the next nine to 12 months, financial markets are likely to come up with creative solutions to start to restructure Venezuela's debt and improve the oil sector’s perception of the country’s risk, said Haley. 

"Can everything be repaid before operators go back in? It's just not feasible," Haley said. "So I think it's something that needs to be done on parallel tracks.”

Sovereign debt and the debt of state oil company PDVSA are intertwined, Haley said. “On the oil and gas obligations that are owed to operators or big oil, there has to be some sign that those are going to be addressed.”

It took years for Argentina to restructure its debt, but the process may be faster in Venezuela because it is a US focus area, Haley said. And if market forces are also ready to invest in the region, political forces will align, he said.

Both development banks and private markets will be involved in debt restructuring in Venezuela, Haley said. It is too early to tell whether the US will provide funds, he added.

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