Puerto Rico's financial oversight board said yesterday that it was still in debt restructuring talks with creditors of the island's power utility, PREPA, a day after rejecting a proposed deal to restructure $9 billion of the utility's bonds, Reuters reported.
Puerto Rico in Distress
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Puerto Rico will argue this week that it shouldn’t be treated like a broke business during the proceedings: Its residents, not creditors, should come first, Bloomberg News reported today. Government lawyers will argue with bondholders tomorrow in federal court in San Juan over what ground rules should apply in the forthcoming legal battle at the heart of the $74 billion restructuring.
While it’s not clear if there are sharks in the waters surrounding Puerto Rico, the island does have sharks of a different kind — ones that hail from mainland hedge funds, municipal bond funds and insurance companies that insure against bond defaults, according to a commentary in the New York Times on Saturday.
Puerto Rico is preparing to seek bids in coming months from private companies willing to operate or improve seaports, regional airports, water meters, student housing, traffic-fine collections, parking spaces and a passenger ferry, according to a government presentation reviewed by The Wall Street Journal.
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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.