Puerto Rico’s Sales Tax Financing Corporation, known as COFINA, yesterday issued $12 billion of new bonds as a federal court-approved deal between the bankrupt U.S. commonwealth and its creditors took effect, according to island officials, Reuters reported. The plan of adjustment approved by U.S. District Court Judge Laura Taylor Swain on Feb.
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A small group of hedge funds are being rewarded for backing an $18 billion restructuring of Puerto Rico’s sales-tax debt that saddled other investors with losses, the Wall Street Journal reported.
A U.S. federal judge yesterday approved a plan to restructure $17 billion of debt from Puerto Rico’s Sales Tax Financing Corporation, known as COFINA, marking the second deal between the bankrupt U.S. commonwealth and its creditors to win court approval, Reuters reported.
After shunning the U.S. territory for much of the past six years, municipal-bond mutual funds are again buying the Puerto Rico’s debt as it recovers from the 2017 hurricane and inches closer to winning a potential court approval to restructure more than $17 billion of sales-tax-backed debt, a major step in its record-setting bankruptcy, Bloomberg News 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.