A U.S. federal judge on Friday ruled against a group of bondholders that bought debt issued by Puerto Rico’s largest public pension, the Employees Retirement System (ERS), denying their ability to hold claim on property used as collateral, Reuters reported.
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Puerto Rico bonds soared as much as 30 percent after the island reached a debt restructuring deal with owners of its sales-tax backed securities, marking a significant milestone in the government’s record bankruptcy, Bloomberg News reported. The U.S.
Puerto Rico has reached a deal with bondholders and insurers of debt issued by its bankrupt sales tax financing corporation, COFINA, the U.S. territory’s governor and federal oversight board said yesterday, Reuters reported. The agreement would reduce COFINA’s sales-tax-backed debt by more than 32 percent and result in about $17.5 billion in debt service savings, officials said in statements.
Jose Ortiz, an electrical engineer who ran the island’s water and sewer utility, said that he’s aiming to be out of the job in two years as the government-owned Puerto Rico Electric Power Authority successfully sells off much of its operations and slashes its $9 billion of debt, 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.