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Jul 16, 2015

Puerto Rico’s PFC did not transfer funds for bond payment -filing

NEW YORK, July 15 (Reuters) – Puerto Rico’s Public Finance
Corporation (PFC) failed to transfer funds to pay the principal
and interest on its bonds, according to the island’s bank and a
filing on Wednesday, highlighting cash problems as the island
tries to restructure its debt.

The transfer of $93.7 million was for a debt service payment
due Aug. 1 by PFC, part of the island’s Government Development
Bank.

Jul 15, 2015

U.S. senators introduce bankruptcy bill for Puerto Rico

NEW YORK (Reuters) – U.S. Democratic senators introduced on
Wednesday a bill to allow Puerto Rico’s public entities to file
for bankruptcy under federal laws as the U.S. territory starts
negotiations with creditors to restructure $72 billion in debt.

Puerto Rico’s public entities currently cannot make use of
Chapter 9 bankruptcy laws as entities in U.S. states can and
instead have to renegotiate their debts with creditors.

Jul 13, 2015

Puerto Rico urges creditors to avoid lawsuits over $72 bln debt

NEW YORK (Reuters) – Puerto Rico pleaded with creditors on
Monday not to engage in lengthy litigation over its $72 billion
debt, but provided little information about how a debt
restructuring would affect them.

At a packed meeting with bondholders at Citibank’s New York
offices, a clutch of the island’s top officials and advisors
again painted a bleak picture for the U.S. territory’s economy
and said fixing it would require pain to be shared by everyone
with a stake in its future.

Jul 13, 2015

Puerto Rico says turnaround requires sacrifice from all stakeholders

NEW YORK (Reuters) – The head of Puerto Rico’s government bank told creditors on Monday that a plan to turn around the island would require all stakeholders to make sacrifices and that a “contentious drawn-out” process would only hurt the commonwealth.

A working group created by Puerto Rico Governor Alejandro Garcia Padilla met creditors at Citibank’s offices on Monday, which an estimated 350 people were set to attend. The working group includes officials such as Victor Suarez, chief of staff in the governor’s office and Government Development Bank (GDB) head Melba Acosta.

Jul 13, 2015

Puerto Rico investors seek answers in Monday’s creditor meeting

NEW YORK, July 13 (Reuters) – Investors in Puerto Rico hope
to get specific information about how the commonwealth plans to
restructure debt when government officials meet with creditors
on Monday, but there are fears that any bungled messaging could
knock bond prices.

Puerto Rico Governor Alejandro Garcia Padilla dropped a
bombshell on holders of its $72 billion debt on Jun 29, saying
he wants to restructure debt and postpone bond payments.

Jul 8, 2015

U.S. House Republicans doubt benefits of Chapter 9 for Puerto Rico -statement

WASHINGTON/NEW YORK (Reuters) – U.S. Republicans on a House
committee expressed doubts on Wednesday about the benefit of
extending federal bankruptcy laws to Puerto Rico and said they
wanted to see more reforms in the U.S. territory before opening
the door to bankruptcy.

Puerto Rico is trying to restructure at least part of its
$72 billion in debt and is pushing for Congress to allow its
municipalities to file under chapter 9 of the U.S. bankruptcy
code. Currently Puerto Rico is excluded from the law.

Jul 7, 2015

U.S. court upholds ruling against Puerto Rico bankruptcy law, slams exclusion

By Edward Krudy

(Reuters) – A U.S. supreme court affirmed a lower court
decision to strike down Puerto Rican legislation aimed at
granting local municipalities the right to enter bankruptcy, but
said excluding the U.S. territory’s public entities from federal
bankruptcy law was unconstitutional.

Puerto Rico passed the so-called Recovery Act last year to
give certain public corporations, with around $20 billion in
debt, the ability to restructure financially in an orderly
process. Puerto Rico is currently struggling with a total debt
load of around $72 billion, which it says it is unable to pay.

Jun 30, 2015

Puerto Rico to make July 1 general obligation debt payment -source

NEW YORK, June 30 (Reuters) – Puerto Rico will make a July 1
coupon payment of $645.2 million on its general obligation debt,
a person familiar with the matter said on Tuesday.

Puerto Rico’s bonds have sold off sharply this week after
Governor Alejandro Garcia Padilla said over the weekend and
again on Monday that the U.S. territory would seek a moratorium
on its debt, which amounts to around $72 billion.

Jun 30, 2015

Puerto Rico makes final payment on $900 million bank loan: source

NEW YORK (Reuters) – Puerto Rico on Tuesday made its final payment on a $900 million short-term loan that it got from a syndicate of banks last year, according to a source close to the banks.

The source, who asked not to be named because the transaction is private, said the payment had been made to the trustee on Tuesday and was on it way to the banks.

Jun 29, 2015

No easy way for Puerto Rico to overhaul government debt

NEW YORK (Reuters) – To restructure government debt Puerto Rico will need to reach a negotiated settlement with creditors or modify its constitution, a long and complicated undertaking that may not succeed.

A report by former IMF staffers that was commissioned by the government is proposing a sweeping debt restructuring that includes government-backed general obligation bonds protected under the U.S. territory’s constitution.

    • About Edward

      "Ed Krudy leads a team covering the U.S. equity market from New York, where he has been since 2009. Prior to that he set up Thomson's new bureau in Budapest, where he initiated coverage of economic, political, market and company news."
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