Correspondent, New York
Megan's Feed
Aug 21, 2015

FDIC ready to act on Puerto Rico banks if needed -letter

NEW YORK (Reuters) – Puerto Rico’s FDIC-insured banks are
well capitalized but the Federal Deposit Insurance Corp stands
ready to act if one should become insolvent, according to a
letter sent to Congressman Sean Duffy, chairman of a Financial
Services subcommittee who had inquired about their health.

Puerto Rico’s Governor Alejandro Garcia Padilla shocked
investors in June when he said the island’s debt, totaling $72
billion, was unpayable and required restructuring. The island
has been in recession for nearly a decade.

Aug 21, 2015

Puerto Rico asks U.S. Supreme Court to overturn restructuring ruling

NEW YORK (Reuters) – Puerto Rico on Friday asked the U.S.
Supreme Court to overturn a ruling that blocks the restructuring
of the commonwealth’s public agencies.

In a petition seeking the court’s review, which was provided
by one of the island’s lawyers, Puerto Rico said a lower court
erred in concluding that U.S. bankruptcy law blocks the
restructuring of the agencies’ debts.

Aug 20, 2015

Puerto Rico’s PRASA sale not going ahead Thursday as expected

NEW YORK, Aug 20 (Reuters) – A bond sale by Puerto Rican
water authority PRASA – which would be the commonwealth’s first
in public markets since it defaulted – will not go ahead on
Thursday to give investors more time to analyze bond materials,
a spokeswoman for the commonwealth’s Government Development Bank
said.

According to data company IPREO, the $750 million deal for
the Puerto Rico Aqueduct and Sewer Authority (PRASA) was slated
to price on Tuesday. However, investors previously said that it
had been pushed to Thursday.

Aug 20, 2015

Puerto Rico’s PRASA sale not going ahead Thursday as expected -sources

NEW YORK, Aug 20 (Reuters) – A bond sale by Puerto Rican
water authority PRASA – which would be the commonwealth’s first
in public markets since it defaulted – will not go ahead on
Thursday to give investors more time to analyze bond materials,
a spokeswoman for the commonwealth’s Government Development Bank
said.

According to data company IPREO, the $750 million deal for
the Puerto Rico Aqueduct and Sewer Authority (PRASA) was slated
to price on Tuesday. However, investors previously said that it
had been pushed to Thursday.

Aug 7, 2015

Puerto Rico’s creditors should prepare to sacrifice -governor

By Nick Brown and Megan Davies

(Reuters) – Puerto Rico’s creditors should be prepared to
make “sacrifices”
in their demands with the U.S. territory after the government
skipped an Aug. 1 bond payment, Governor, Alejandro Garcia
Padilla said on Friday.

The commonwealth paid only $628,000 of a $58 million payment
due on its Public Finance Corp (PFC) bonds, the first time it
had ever failed to make a debt payment. Investors and credit
rating agencies viewed it as a default.

Aug 3, 2015

Puerto Rico makes only partial bond payment; broader defaults possible

NEW YORK, Aug 3 (Reuters) – Puerto Rico has defaulted on its
debt by paying only a fraction of what was due on bonds due Aug.
1, showing the depth of the island’s economic and cashflow
problems and potentially opening the door to broader defaults
and litigation from bondholders.

The U.S. commonwealth paid only $628,000 of a $58 million
payment due on its Public Finance Corp bonds, the head of its
Government Development Bank said in a statement on Monday.

Aug 1, 2015

Puerto Rico will fail to make Aug.1 payment, signaling default

By Megan Davies and Jessica DiNapoli

(Reuters) – Puerto Rico will miss a payment on debt due Aug.
1, the governor’s chief of staff said on Friday, an event that
will be considered a default by investors as the commonwealth
lurches towards what could be one of the largest U.S. municipal
debt restructurings in history.

The island faces a number of debt payments that day but had
signaled in recent weeks that it may miss the $58 million
payment on Public Finance Corporation (PFC) bonds.

Jul 31, 2015

Puerto Rico nears default as debt restructuring beckons

NEW YORK, July 31 (Reuters) – Puerto Rico’s expected default
on debt due Saturday would be the start to what could end up
becoming one of the largest municipal restructurings, with the
potential to open the door to a fight with investors and spark
volatility in bond prices.

Puerto Rico Governor Alejandro Garcia Padilla shocked
investors in June when he said the island’s debt – totaling $72
billion – was unpayable and required restructuring.

Jul 25, 2015

Puerto Rico seeking liquidity to make Aug. 1 GDB payment -gov. office

By Megan Davies

(Reuters) – Puerto Rico is working on ways to increase
liquidity at its Government Development Bank (GDB) to make a
debt service payment due Aug. 1, the governor’s chief of staff
said on Friday.

The GDB, which has reported dwindling cash reserves, faces
$169.6 million in debt service on notes on Aug. 1.

Jul 23, 2015

Puerto Rico’s PREPA bondholders propose $8 bln restructuring – outline

NEW YORK July 23 (Reuters) – Bondholders of Puerto Rico’s
debt-laden public utility PREPA offered to refinance their $8
billion in debt by splitting it into two classes of bonds, a
move they say would save PREPA $2.5 billion in financing costs
through 2025, according to an outline of the proposal made
public by the bondholders on Thursday.

The plan, presented to PREPA on July 7, is the latest salvo
in ongoing restructuring talks between the power utility and
creditors who hold about $9 billion in total debt, and counters
a June proposal from PREPA that was met with resistance from
creditors.