Puerto Rico’s U.S. overseers threw support behind Governor Ricardo Rossello’s push for deeper concessions in the electric utility’s debt-cutting agreement, setting up a clash with creditors who said it jeopardizes the broader effort to restructure the territory’s $70 billion debt, Bloomberg News reported yesterday.
Puerto Rico in Distress
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Puerto Rico Electric Power Authority, the island's ailing power utility, yesterday reopened a long-agreed debt restructuring deal that drew ire from bondholders and put the stock of credit insurers under further selling pressure, Reuters reported.
Puerto Rico's benchmark government bond slumped to an all-time low on Monday after competing groups of bondholders stepped up their legal battle over who should be paid first out of a smaller-than-expected pool of cash, Reuters reported yesterday.
A new fiscal plan that leaves the Puerto Rico with less money to cover its debts pushed the value of certain bonds down as much as 9 percent last week through Thursday, according to Municipal Securities Rulemaking Board data, the Wall Street Journal 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.