Puerto Rico in Distress

ABI Analysis

Two holdout bond insurers have agreed to a previously announced deal to restructure more than $8 billion of revenue bonds issued by Puerto Rico’s bankrupt electric utility, the U.S. commonwealth’s federally created financial oversight board said yesterday, Reuters reported. The action by National Public Finance Guarantee Corp. and Syncora Guarantee Inc.

A lawsuit filed by Puerto Rico’s financial oversight board over a new pension and healthcare funding law will move forward after a federal judge on Thursday denied the U.S. commonwealth’s motion to dismiss the case, Reuters reported.

A lawsuit filed by Puerto Rico’s financial oversight board over a new pension and healthcare funding law will move forward after a federal judge yesterday denied the U.S. commonwealth’s motion to dismiss the case, Reuters reported.

Bond insurance company MBIA Inc. yesterday sued several financial institutions over their role in underwriting billions of dollars of Puerto Rico bonds that eventually went into default, Reuters reported. The lawsuit filed in superior court in San Juan claimed the banks “inflicted a financial tragedy” on the now-bankrupt U.S. commonwealth by urging it to issue “unsustainable” debt.

Other Resources

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.