Puerto Rico in Distress

ABI Analysis

Puerto Rico residents are set to choose a new governor in the Nov. 3 election after one of the most turbulent periods in the U.S. territory’s history, marked by natural disasters, economic crisis, political upheaval and now a pandemic, the Wall Street Journal reported.

Key Puerto Rico bondholders asked the court to set plan-of-adjustment deadlines for the Puerto Rico Oversight Board to meet, Bond Buyer reported. Four groups of investment funds filed the joint motion on Tuesday night in the U.S. District Court for Puerto Rico, which is handling the bankruptcy.

Bond insurer National Public Finance Guaranty filed a motion on Monday in a court seeking an investigation of likely illegal hedge fund trading of Puerto Rico bonds during mediation over those bonds, Bond Buyer reported. National filed the motion Monday afternoon in the U.S.

The U.S. Virgin Islands has called off efforts to sell its rum-tax collections to bondholders, extending the struggling territory’s long banishment from credit markets, WSJ Pro Bankruptcy reported. Gov.