In mid-November Bloomberg News reported that the board’s chief lawyer, Martin Bienenstock of Proskauer Rose, said at a Nov. 15 Title III Puerto Rico bankruptcy hearing that a plan of adjustment for the debt might exclude any debt payments for five years.
“I hope they do include debt service, but I think the commonwealth may use the [lawyer’s] comments as an opportunity, and justification, to cut them out,” said Shaun Burgess, Puerto Rico portfolio manager for Cumberland Advisors, which holds insured Puerto Rico debt.
The board originally asked Puerto Rico’s Fiscal Agency and Financial Advisory Authority to submit a proposed revised plan by Dec. 22. On Dec. 20 the board sent a letter to Gov. Ricardo Rosselló saying that it was extending the deadline to Wednesday, Jan. 10.
The board also pushed back the deadlines for proposed plans for the Puerto Rico Electric Power Authority and Puerto Rico Aqueduct and Sewer Authority to Wednesday from Dec. 22. Once the Puerto Rico government and these authorities present the plans to the board there will be additional steps before they become adopted as official plans.
Board executive director Natalie Jaresko has said projecting economic trends will be key to creating a good fiscal plan.
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