© Reuters. Puerto Rico oversight board enters agreement to address debt claims

(Reuters) – Puerto Rico’s federally created financial oversight board said on Sunday it has entered into an agreement with bondholders to provide “a framework for a plan of adjustment” to address $35 billion of claims against the bankrupt U.S. territory.

The agreement establishes terms for the restructuring of more than $18 billion of Puerto Rico’s General Obligation (GO) and Public Buildings Authority (PBA) debt, according to the Financial Oversight and Management Board, which filed a form of bankruptcy for the island in 2017 in an effort to restructure about $120 billion of debt and pension obligations.

While the deal has the support of creditors holding about $3 billion in GO and PBA claims, it faces opposition from Puerto Rico’s government.

The deal will be part of a debt-adjustment plan the oversight board said it expects to file in federal court within 30 days to address Puerto Rico’s pension and other core government debt.

The board, which reached a deal with a retirees committee last week over a more than $50 billion of unfunded pension liability, said bondholders and other parties acknowledge that “Puerto Rico’s difficult financial situation requires a meaningful reduction in its debt burden to a sustainable level.”

The Puerto Rico Fiscal Agency and Financial Advisory Authority on Sunday reiterated its opposition to the upcoming plan of adjustment mainly because it includes a reduction in pension payments to certain retirees.

“The oversight board, creditors and other interested parties are well aware that without participation of the Government of Puerto Rico through legislative, executive and administrative action, no plan is feasible, no agreement can be executed, and no security will be marketable,” the authority said in a statement.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link