Puerto Rico in Distress

ABI Analysis

A subsidiary of Spanish highway operator Abertis is considering borrowing $424 million to fund capital projects for four Puerto Rico toll roads, Bloomberg News reported. The Public Finance Authority, a Wisconsin-based issuer, approved the bond sale for Puerto Rico Toll Roads LLC, at a June 26th board meeting.

Potential changes to Puerto Rico Electric Power Authority’s debt-cutting plan have lost support of National Public Finance Guarantee after an appeals court expanded creditors’ allowable claims, Bloomberg News reported.

Prof. David Skeel, chairman of the federal control board that oversees Puerto Rico’s finances, announced on Wednesday that he is stepping down as the U.S. territory struggles to restructure more than $9 billion in debt held by its troubled power company, the Associated Press reported.

A group of bondholders and insurers of Puerto Rico Electric Power Authority debt extended a cooperation agreement to oppose the bankrupt utility’s proposal to drastically reduce its obligations, Bloomberg News reported. Assured Guaranty, Syncora Guarantee and GoldenTree Asset Management, along with an ad hoc group of investors including Invesco Advisers Inc.