So in 1979 and 80 I had calculated that American banks uh lent more to countries and they were going to be able to pay back at that interest rate and so on. And I realized uh we're going to have a debt default. Then I was interviewed I went to Congress.Um they asked me about all all of this and in August 1972 Mexico defaults on its debt. And then through the next 10 years, many other countries defaulted on their debt. And I thought at the time uh we were going to have a crisis, a debt crisis.And I couldn't ...

Core Viewpoint - Tullow Oil is facing a potential default on its debts due to a significant bond repayment of $1.3 billion, while its cash reserves are dwindling to less than $200 million [1][2]. Financial Situation - The company is required to make a bond repayment of $1.3 billion by May next year and is attempting to negotiate refinancing with lenders [2]. - S&P Global has downgraded Tullow's credit rating from CCC+ to CCC, indicating a deeper plunge into junk status and increasing borrowing costs [2][3]. - Analysts predict that Tullow will spend $100 million more than it generates this year, exacerbating its cash flow issues [4]. Liquidity Concerns - S&P has expressed doubts about Tullow's ability to repay the $1.3 billion bond, citing insufficient liquidity [3]. - The possibility of further downgrades exists if the company's liquidity continues to decline [3]. Historical Context - Tullow Oil was once part of the FTSE 100 index with a market value exceeding £14 billion but has since fallen to a market capitalization of £155 million, trading at less than 11 pence per share [4][5]. - The company has accumulated significant debt while attempting to develop its discoveries, leading to asset sales to raise cash for creditors [6]. Operational Changes - Tullow is divesting assets in Kenya and Gabon, with the proceeds directed towards debt repayments, leaving it primarily operating in Ghana and with minor operations in Côte d'Ivoire [6][7]. - A spokesperson for Tullow stated that the company is making progress in refinancing its capital structure and is exploring various options [7].