NEW YORK, May 15 (Reuters) – Puerto Rico bonds rallied in
high volume, pushing yields lower on Friday after local
lawmakers agreed to a series of tax measures late on Thursday
night that could help stabilize the island’s finances and pave
the way to a much needed financing deal.
Yields fell on the island’s general obligation bonds (GOs)
as well as on bonds backed by sales tax revenues after lawmakers
said they would increase the sales tax to 11.5 percent from the
current 7 percent as the core of a package of tax measures.
NEW YORK, May 13 (Reuters) – A downgrade of Chicago’s debt
rating to junk created confusion in the $3.7 trillion U.S.
municipal bond market on Wednesday, with prices sliding in a
volatile session and predictions that they still have further to
While Moody’s Investors Service downgraded the city’s $8.1
billion of general obligation debt to junk at Ba1, other big
Wall Street credit rating agencies have a rosier view of the
May 8 (Reuters) – Puerto Rico is set to run out of cash by
the end of September without additional financing, and may
implement emergency measures such as stopping debt repayments,
according to a report by the U.S. territory’s fiscal agent.
The measures could include steps to cut government spending,
a “moratorium on the payment of debt service” and “a debt
adjustment for the Commonwealth,” the island’s Government
Development Bank (GDB) said in a report published late Thursday.
NEW YORK (Reuters) – Citibank (C.N: Quote, Profile, Research, Stock Buzz) has sold a $146 million loan it had with the Puerto Rico Electric Power Authority (PREPA) to a distressed debt investment firm, two sources said on Thursday, in a sign of the growing uncertainty over the utility’s finances.
PREPA’s bank lenders and other bondholders are disputing who has priority in loan repayments, said one of the sources, who are familiar with the utility’s ongoing, private debt restructuring talks and requested anonymity.
NEW YORK, May 6 (Reuters) – A group of hedge funds that hold
Puerto Rico’s government debt plans to hire a litigation law
firm as a financing deal that could help save the U.S. territory
from a potential default looks increasingly remote.
The Ad Hoc group of hedge funds, which holds $4.5 billion of
Puerto Rico’s debt, is planning to hire Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, a Washington
D.C.-based firm that describes itself as a high stakes
litigation boutique, a spokesman for the hedge funds said
RIVERHEAD, New York, April 29 (Reuters) – A former Goldman
Sachs banker was found not guilty on Wednesday of charges that
he raped an Irish student at his rental home while vacationing
in Long Island in the summer of 2013.
After a three-week trial, Judge Barbara Kahn acquitted Jason
Lee, 38, of the most serious charge of rape at a Suffolk county
court in Riverhead, New York. The charge carried a maximum
sentence of 25 years in prison.
RIVERHEAD, New York, April 28 (Reuters) – A New York judge
heard the defense’s closing argument on Tuesday in the trial of
a former Goldman Sachs banker accused of raping an Irish student
on Long Island in the summer of 2013.
Jason Lee, a former managing director, is accused of barging
into a bathroom and raping the woman, who was 20 years old at
the time, after a night of drinking at a popular night spot. He
faces a maximum of 25 years in prison if convicted.
NEW YORK (Reuters) – A New York judge is set to hear closing arguments on Tuesday in the trial of a former Goldman Sachs banker accused of raping an Irish student on Long Island in the summer of 2013.
Jason Lee, a former managing director, is accused of barging into a bathroom and raping the woman, who was 20 years old at the time, after a night of drinking at a popular night spot. He faces a maximum of 25 years in prison if convicted.
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.