Correspondent, New York
Megan's Feed
Sep 18, 2015

Puerto Rico businesses fret tax hikes will erode profits

SAN JUAN/NEW YORK (Reuters) – Business is tough enough already for Carlos Jimenez without having to face higher taxes. Fast Lane, his three-location car-wash chain in Puerto Rico, has laid off about half the 106 employees it had in 2007.

“Every year you take out two or three people, make your business leaner,” he said.

Sep 18, 2015

Analysis – Puerto Rico businesses fret tax hikes will erode profits

SAN JUAN/NEW YORK (Reuters) – Business is tough enough already for Carlos Jimenez without having to face higher taxes. Fast Lane, his three-location car-wash chain in Puerto Rico, has laid off about half the 106 employees it had in 2007.

“Every year you take out two or three people, make your business leaner,” he said.

Sep 10, 2015

Puerto Rico’s recovery plan faces much doubt, many obstacles

NEW YORK/SAN JUAN (Reuters) – Puerto Rico’s new plan to haul itself out of a huge financial hole is long on ifs and buts and short on confident predictions.

Faced with the prospect that its cash will run out within months, the Caribbean island is proposing numerous measures that require support from its divided legislature, action from a U.S. Congress that may not be supportive, and the willingness of a wide range of bondholders to take losses.

Sep 10, 2015

Analysis – Puerto Rico’s recovery plan faces much doubt, many obstacles

NEW YORK/SAN JUAN (Reuters) – Puerto Rico’s new plan to haul itself out of a huge financial hole is long on ifs and buts and short on confident predictions.

Faced with the prospect that its cash will run out within months, the Caribbean island is proposing numerous measures that require support from its divided legislature, action from a U.S. Congress that may not be supportive, and the willingness of a wide range of bondholders to take losses.

Sep 9, 2015

Puerto Rico plan proposes reforms, debt cuts, to tackle fiscal crisis

SAN JUAN/NEW YORK (Reuters) – Puerto Rico officials are proposing the island cut teacher pensions, impose a financial control board and restructure $18 billion of its debt due in the coming five years, as part of a long-anticipated plan unveiled on Wednesday to pull the island out of a wrenching fiscal crisis.

The financial overhaul plan, the product of a task force created in June by Gov. Alejandro Garcia Padilla, anticipates the island running out of money by next May or June, and says even with sweeping spending cuts Puerto Rico needs concessions from bondholders who include mom-and-pop investors and big Wall Street hedge funds.

Sep 4, 2015

Rubio says Chapter 9 for Puerto Rico will not solve problems

By Megan Davies

(Reuters) – Republican presidential candidate Marco Rubio
said giving Puerto Rico access to U.S. bankruptcy laws would not
solve the U.S. territory’s problems and “should only be a
measure of last resort,” he said in an opinion piece published
Friday.

Rubio, who is in Puerto Rico at the same time that
Democratic contender Hillary Clinton is visiting, attacked the
island’s politicians for having “taxed and spent too much, and
lacked the political courage and competence to pull Puerto Rico
out of economic despair.”

Sep 3, 2015

Presidential contenders focus on Puerto Rico fiscal crisis

NEW YORK (Reuters) – Puerto Rico is getting attention from 2016 presidential hopefuls, who are making early stops in the U.S. territory, likely in part due to the rapidly growing number of Puerto Ricans living in the key battleground state of Florida.

Contenders for the White House, such as Democrat Hillary Clinton and Republican Marco Rubio, are scheduled on Friday to visit the island, which is trying to dig itself out of a wrenching fiscal crisis.

Sep 2, 2015

Puerto Rico’s PREPA reaches deal with bondholder group

NEW YORK (Reuters) – Puerto Rico’s indebted public utility
PREPA has reached a deal with a key bondholder group which would
see them swap their bonds for new notes, receiving 85 percent of
their existing bond claims, according to a statement from the
utility.

PREPA, buckling under $9 billion in total debt, had been
renegotiating its debt for a year with so-called ad hoc group
representing about 35 percent of its bondholders. The deal was
reached late Tuesday night according to sources.

Sep 2, 2015

Puerto Rico’s PREPA, bondholders work toward deal – sources

SAN JUAN/NEW YORK (Reuters) – Puerto Rico’s electric utility
PREPA and its bondholders are working toward terms of a debt
restructuring deal but talks may go past the key deadline of
midnight Tuesday as long as both sides agree, two sources
familiar with the matter said on Tuesday.

Under a forbearance agreement with creditors that protects
PREPA from lawsuits until Sept. 15 while sides negotiate, PREPA
had until midnight Sept. 1 to execute a restructuring agreement.
If a deal is not reached by Sept. 1, the forbearance agreement
will automatically terminate, according to a July statement from
the bondholders.

Aug 24, 2015

Puerto Rico says water authority not at risk; investors wary

SAN JUAN/NEW YORK, Aug 24 (Reuters) – Potential buyers of
bonds being sold by Puerto Rico’s water authority, PRASA, want
stronger protections in the event the agency becomes insolvent,
people close to the matter said, as the island’s government
tries to assure investors it does not need restructuring.

PRASA’s $750 million bond sale, initially slated to price
last week, has been delayed to give would-be buyers more time to
analyze materials. According to three people familiar with the
matter, the delay is due in part to concerns by bondholders over
their rights in an insolvency.