It is indeed difficult to determine the motives of the noteholders. However, the noteholder lending offer appears to not give the company what it wants, but what it needs to pay off the noteholders.

The lipstick saying could also be applied to the company.

In the mean time, the Market shows lots of opportunity and will continue to do so, and the noteholders are missing out. Fung's affidavit claims he has investors in the wings ready to put down cash, paying off the noteholders and making the company liquid through the arbitration. And it is very possible and likely that the noteholders have determined that in three years, even with any award possible from Ven, they will still be waiting several more years for repayment of the debt due last December. Things continually change in Ven and Chavez appears to be setting up a "Banana Curtain" and continues to stiff companies. Chavez going away, by whatever means, is no guarantee that the current direction of the country will significantly change. Ven will always have zealots waiting in the wings to continue the Chavez legacy. Getting out sooner - nine months, rather than later - three years, could now be considered most cost effective to the noteholders.

The Plan of Arrangement still has to be determined and creditors will eventually have to be paid, even if only a percentage of their original amounts. However, 2/3 of the creditors must approve, by number and by credit amount. As the largest holder of company debt, the noteholders do hold the largest voting share. Although sympathetic to the company, the judge cannot force voting approval of the Plan of Arrangement on the creditors.

It will be interesting to see how this plays out.