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

U.S. charter school default rate up, but sector sound: report

NEW YORK (Reuters) – U.S. charter schools are defaulting on bonds at a rate of 3.3 percent, a level higher than that recorded three years ago but still not one which should concern investors, according to the co-publisher of a report made available on Tuesday.

Charter schools, held in a number of municipal bond funds, are public schools that operate independently and are an alternative to schools run by local school districts. They are publicly funded but use private-sector lenders to fund buildings.

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 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

Citi to work with Puerto Rico on broker-dealer basis – source

NEW YORK (Reuters) – Puerto Rico has hired Citi as a
broker-dealer as the island seeks to restructure its debt, an
industry source said on Wednesday.

The bank will host a meeting with creditors in New York on
Monday, Melba Acosta, head of the island’s Government
Development Bank, said on Tuesday. That will be the first
meeting with creditors since Governor Alejandro Garcia Padilla
said a week ago that he wants to restructure its $72 billion
debt.

Jul 3, 2015

Puerto Rico signals Chapter 9 push with ex-Detroit judge on board

NEW YORK (Reuters) – When Puerto Rico hired former Detroit judge Steven Rhodes it sent a signal to creditors that one possible solution it sees is the one thing it cannot do now: declare bankruptcy.

Gaining access to the U.S. Chapter 9 bankruptcy laws for the commonwealth would give a framework for creditors and debtors of public corporations to work out their differences. Allowing the Commonwealth itself to follow the same path as the city of Detroit, which emerged from bankruptcy last year, would be a further step.

Jul 3, 2015

Insight – Puerto Rico signals Chapter 9 push with ex-Detroit judge on board

NEW YORK (Reuters) – When Puerto Rico hired former Detroit judge Steven Rhodes it sent a signal to creditors that one possible solution it sees is the one thing it cannot do now: declare bankruptcy.

Gaining access to the U.S. Chapter 9 bankruptcy laws for the commonwealth would give a framework for creditors and debtors of public corporations to work out their differences. Allowing the Commonwealth itself to follow the same path as the city of Detroit, which emerged from bankruptcy last year, would be a further step.

Jul 1, 2015

Puerto Rico’s PREPA avoids default, makes $415 mln payment

By Megan Davies

(Reuters) – Puerto Rico’s distressed power authority, PREPA,
avoided default on Wednesday by making a $415 million bond
payment, but creditors cautioned if restructuring negotiations
with the utility over its $9 billion debt deteriorate it would
take legal action.

The restructuring talks are seen as a gauge of whether the
U.S. commonwealth can fix other broken public entities as it
tries to climb out of a $73 billion debt hole. Puerto Rico’s
governor, Alejandro Garcia Padilla, said on Monday he wanted to
restructure the debt and postpone bond payments to solve the
island’s fiscal crisis.

Jun 30, 2015

Puerto Rico’s PREPA, creditors close to deal to avert default-sources

NEW YORK (Reuters) – Puerto Rico’s distressed power utility
PREPA is close to a deal with its creditors to avoid a possible
default on a bond payment of around $400 million due July 1,
sources familiar with the talks said on Tuesday.

PREPA’s payment would likely be partly financed by the
insurers who back the bonds, the sources said. Credit ratings
agency Moody’s Investors Service has said it expects the utility
to default on that payment.