Puerto Rico’s power utility struck a deal with a group of creditors that seeks to allow the bankrupt U.S. commonwealth to restructure more than $8 billion of bonds, according to an announcement by government authorities on Friday, Reuters reported.
Puerto Rico in Distress
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Puerto Rico’s longstanding pledge to pay off about $13 billion of outstanding general obligation (GO) bonds is just an unsecured promise, according to the latest lawsuits brought by the bankrupt U.S. commonwealth’s federally created financial oversight board, Reuters reported. Its action capped off a barrage of litigation this week that unsettled the $3.8 trillion U.S.
Puerto Rico’s federal oversight board sued dozens of banks and bondholders to claw back more than $1 billion in fees and interest payments tied to debt the government claims is null and void, Reuters reported. The suits, filed just before a May 2 deadline, escalate the board’s conflict with hedge funds and other investors who hold some $6 billion of Puerto Rico general-obligation debt.
A federal control board overseeing Puerto Rico’s finances says dozens of municipalities and public corporations have failed to pay or deposit $340 million into a retirement system for government employees, the Associated Press reported.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.