NEW YORK, April 24 (Reuters) – A group of bondholders in
Puerto Rico’s power authority, PREPA, slammed on Friday the
public utility’s criticisms of their $2 billion restructuring
plan, saying the objections were flawed and based on
The statement came in response to PREPA’s rejection late on
Thursday of the bondholders’ plan to overhaul the utility. PREPA
said the plan underestimated costs by $3.1 billion over its
nine-year span and was based on “numerous incorrect or
NEW YORK (Reuters) – Puerto Rico’s Government Development Bank (GDB) has warned the government would likely face a shutdown in three months because of a lack of liquidity and said a financing deal currently appears unlikely, according to a letter sent to lawmakers.
Puerto Rico faces a fiscal crisis and is trying to raise $2.95 billion in new financing while pushing through unpopular tax reforms such as hiking the value-added tax and increasing a levy on crude oil to help pay for it.
DORADO, Puerto Rico (Reuters) – Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators have finally closed Puerto Rico’s ailing lender Doral Financial, a stock he has been shorting for the past six months.
“Doral is no more,” he tells staff in his office, its marble desk tops, dark wood furniture and leather chairs more reminiscent of a New England country club than a Puerto Rico beach town.
NEW YORK, April 14 (Reuters) – A $2 billion bondholder plan
to restructure Puerto Rico’s troubled power authority contains
aggressive elements that are unlikely to work, the utility’s
chief restructuring officer said in testimony before Puerto
Rico’s Senate on Tuesday.
Lisa Donahue said demands that creditors be paid in full and
on time would be unlikely to work as a starting point for
further negotiations, although that may be a possible outcome.
She also said that certain cost estimates were too low and that
the plan forecasts an unjustified increase in demand.
By Edward Krudy
RIVERHEAD, N.Y. (Reuters) – Lawyers for a former Goldman Sachs managing director whose trial began on Wednesday on charges of raping an Irish student in the bathroom of a home he rented on New York’s Long Island said the sex was consensual.
Prosecutors say Jason Lee, 38, met the woman and friends at a restaurant and bar and invited them back to his rental home in the upscale resort town of East Hampton on Long Island in August 2013.
NEW YORK, April 1 (Reuters) – Puerto Rico’s debt-laden
electric power utility said on Wednesday it was concerned that
creditors had made public their offer to provide $2 billion in
new financing, calling the disclosure potentially misleading and
saying it had expressed doubts about parts of their plans.
The Puerto Rico Electric Power Authority (PREPA), in talks
with its bondholders to restructure its $9 billion in debt,
added that the disclosure was partial, it had not had time to
review the plan, and was seeking more information about the
assumptions about it.
NEW YORK, March 27 (Reuters) – Creditors of Puerto Rico’s
electric power authority are likely to agree by a Tuesday
deadline to extend a forbearance agreement aimed at avoiding a
potentially messy default, two people close to the matter said
Negotiations between the power authority PREPA and creditors
holding some $9 billion in debt will likely continue over the
weekend, Lisa Donahue, PREPA’s chief restructuring officer, said
late on Thursday.
NEW YORK (Reuters) – Puerto Rico’s electric power authority
PREPA is trying to persuade creditors in a meeting on Thursday
to give it more time to overhaul its business, as some
bondholders push PREPA to accept new financing to avoid a
default, according to sources familiar with the negotiations.
At a meeting in New York, PREPA will argue that creditors,
who hold over $9 billion of its debt, should extend a
forbearance agreement that expires on March 31. Once the
agreement expires creditors have the right to accelerate their
claims, potentially forcing the utility into insolvency.
NEW YORK (Reuters) – Puerto Rico’s government has tasked former IMF employees to help move the U.S. territory to more rigorous financial disclosure standards typically used by sovereign nations to make them more appealing to buyers of emerging-market debt.
Investors have been calling for consolidated financial reporting across all government entities, including the shaky pension system, that would give a more accurate picture of Puerto Rico’s liabilities and cash needs. The U.S. commonwealth is expected to sell $2.95 billion of bonds in May.
NEW YORK (Reuters) – A key U.S. regulator said on Wednesday
it supports banks making prudent investments in the U.S.
municipal bond market but showed no indication it would soften
its stance on refusing to allow banks to include muni bonds as
Regulators in September issued rules that banks must hold
enough easy-to-sell assets in case of a crisis. Municipal bonds,
used by U.S. localities to fund infrastructure investments and
other spending, were not included in the buffer.