Lazard Challenges Centerview for Role in Venezuela’s Massive Debt Restructuring

Investment bank Lazard has reportedly offered a $25 million proposal to replace Centerview Partners as Venezuela’s financial adviser in what could become one of the largest sovereign debt restructurings in history, according to a source familiar with the matter.

Venezuela announced in May that it had appointed U.S.-based Centerview Partners to advise on the restructuring of its sovereign debt and the obligations of state-owned oil company PDVSA. The decision initially boosted Venezuelan bond prices as investors welcomed progress toward resolving the country’s long-standing default.

However, Lazard is now seeking to secure the advisory role at a significantly lower cost. According to the source, Lazard believes Venezuela can obtain top-tier restructuring expertise without paying excessive fees, citing the firm’s extensive experience in sovereign debt advisory services.

Bloomberg previously reported that Lazard’s proposed compensation package is far below the fees Centerview had been negotiating. Draft terms reportedly included a monthly retainer of $750,000 and a success fee equal to 0.1% of the total debt restructured, potentially resulting in compensation ranging from $150 million to $200 million.

Despite the competing offer, Venezuela reaffirmed on Sunday that Centerview remains its selected financial adviser. In a statement, the Ministry of Communication and Information said the government evaluated firms using consistent criteria, including experience, analytical capabilities, expertise, and understanding of Venezuela’s financial situation.

“We thank Lazard and other firms for their interest in supporting our debt restructuring efforts,” the ministry said, adding that Centerview was chosen based on those evaluation standards.

A Lazard spokesperson declined to comment, while Centerview stated that its compensation will reflect market rates and dismissed reports suggesting otherwise as inaccurate.

Venezuela’s debt restructuring is one of the world’s most complex default cases. The country and PDVSA have approximately $60 billion in defaulted bonds outstanding, while total liabilities, including arbitration claims and accumulated interest, are estimated to exceed $150 billion. The selected adviser will play a critical role in negotiations with creditors and in shaping Venezuela’s long-term financial recovery strategy.