Puerto Rico's federally appointed financial oversight board scheduled mediation in debt restructuring talks between the U.S. territory's general obligation bondholders and holders of its so-called COFINA debt, which is backed by sales tax revenue, the board said in a letter to the creditors on Thursday, Reuters reported on Friday.
Puerto Rico in Distress
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As the debt started piling up and Puerto Rican leaders started getting desperate, commonwealth officials started making bigger and bigger promises to prospective bondholders, according to a Washington Examiner commentary today.
When Puerto Rico struck a deal more than a year ago to cut the government electric company’s $9 billion debt, one group was spared the hit: bond insurers, whose guarantees the island needed to win back the faith of investors, Bloomberg News reported yesterday.
Creditors of Puerto Rico's struggling power authority, PREPA, have presented the island's government with a counter-offer to restructure the utility's $8.9 billion in debt, Reuters reported yesterday. The U.S. territory's government was planning to review the plan ahead of a Friday deadline to finalize a restructuring deal at the utility.
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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.