Whither PDVSA? And its debt?

This article is mostly a rehash of the same story I mocked here. It even quotes Luis Pacheco (aka Augusto Rodriguez? Ongoing chuckle for me…) giving the usual line about how nice it is to be in Colombia now. All good.

But one little tidbit grabbed my attention:

Some former PDVSA workers are itching to return to Venezuela–but only after a regime change. “I would return immediately,” said Horacio Medina, a former PDVSA manager who negotiated contract agreements between PDVSA and private companies. Medina belongs to a new fledgling group called Venezuela and its Oil, which he said is made up of engineers, lawyers, and economists who dream of creating a new state-owned oil company to replace PDVSA, an institution so “destroyed” that “you can’t rebuild it,” Medina said in a phone interview from his home in Florida.

People are out there bidding up Venezuelan bonds because President Hugo Chavez is sick with cancer, and they seem to think that an end to his presidency would reduce default risk. But now these folks are advocating to replace the state oil company and make a clean start. That raises some interesting questions about the PDVSA bonds issued under the current administration.