The Bond Buyer
“Puerto Rico debt deal reaches a turning point”
By Robert Slavin, September 11, 2020
The more than three year process of negotiating a new Puerto Rico central government $35 billion debt deal has reached a turning point.
On Tuesday the Puerto Rico Oversight Board submitted a status report to the court overseeing the bankruptcy that said “only a brief respite is required” to determine if the board could reach a deal with creditor parties.
It said it expected to know by Oct. 25 whether it had completed a new deal. It told bankruptcy Judge Laura Taylor Swain that it would report back to her by then.
The debt deal also addresses payouts to Highways and Transportation Authority, Employees Retirements System, Infrastructure and Finance Authority Rum, Metropolitan Bus Authority, and Convention Center District Authority bonds. In the February deal these bonds, amounting to $16 billion in debt, were to be paid at an aggregate level of three cents on the dollar.
“Obviously creditors will fight tooth and nail to get everything they can because there’s less available than there was before,” said Shaun Burgess, portfolio manager for Cumberland Advisors.
Read the full article here (paywall): https://www.bondbuyer.com/news/puerto-rico-title-iii-debt-deal-reaches-turning-point
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