Texas. Virginia. What are municipal bonds? Nor does it apply to the roughly $50 billion in pensions that the island owes its retired government workers — the territory’s biggest debt.Puerto Rico’s governor, Wanda Vázquez, supported the debt restructuring plan last year, but she recently said the retirees should get sweeteners, too.The territory was able to improve the deal for bondholders because of a recent economic windfall.
Puerto Rico has reached agreement with a large portion of its general obligation bond holders—and the holders of the constitutionally protected “Puerto Rico Building Authority bonds.”. The agreement with general-obligation bondholders gives them more cash up front and more attractive debt, while costing the territory $1 billion less than previously expected.The agreement, contained in a regulatory filing made Sunday evening by the territory’s federal oversight board, revises parts of Under the restructuring plan released in September, the board suggested paying the general obligation bondholders $11.8 billion, including $2 billion up front.
But if they lost — if the court confirmed that their bonds were invalid — those bondholders would get nothing.Those bondholders said the board’s offer amounted to illegal discrimination and vowed to sue.
"These were tough negotiations and we are confident we reached the best deal possible for Puerto Rico to move on from decades of incurring debt we could not afford. Our attorneys have extensive experience representing investors wronged in the Puerto Rico bond default crisis. The Puerto Rico Oversight Board's move to declare null $6 billion of general obligation bonds may itself be illegal, according to two attorneys following the case. We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services. Utah.
Under the new agreement, the debt would be settled for $10.7 billion, with $3.8 billion up front.José Carrión, the chairman of the oversight board, called the deal “a win for The deal still requires the approval of Puerto Rico’s Legislature, but it would provide for holders of the island’s general-obligation bonds to exchange them for a combination of cash and new debt. South Dakota. Washington .
It offered holders of pre-2012 bonds 64 cents on the dollar, and those holding later vintages either 45 cents or 35 cents on the dollar.Holders of the later bonds were free to pursue their lawsuits, and the oversight board would set up a litigation trust to pay them up to 64 cents on the dollar if they won. Wyoming. "We have fought hard for the interests of the people of Puerto Rico and we are glad to have reached a consensual agreement with creditors that lowers Puerto Rico's total debt burden and its annual debt payments significantly," said the Oversight Board's Executive Director Natalie Jaresko. Puerto Rico has reached a deal with creditors who hold $35 billion in its general obligation bonds, passing an important milestone as it tries to resolve its $129 billion debt crisis.. said Susheel Kirpalani, an attorney from Quinn Emanuel Urquhart & Sullivan who represents bondholders in the Lawful Constitutional Debt Coalition.That group holds approximately $1.4 billion in constitutionally backed debt and includes hedge funds GoldenTree Asset Management, Monarch Alternative Capital, Whitebox Advisors and Taconic Capital, according to public filings.The deal, which took about three months of negotiations, is expected to be filed with the court within 30 days with bondholders anticipating the plan's ultimate approval by early 2020, according to a source familiar with the settlement agreement.The Government of Puerto Rico issued a statement rejecting the deal, citing the administration's strong opposition to pension cuts, which are included in the amended fiscal plan the restructuring deal is premised on. Virgin Islands. It will also slash the bankrupt island's debt service, including principal and interest over the next 30 years, by roughly half to $21 billion from $43 billion.Of the roughly $13 billion in outstanding GO bonds, the bonds issued pre-2012 would receive 64 cents on the dollar, while the 2012 and 2014 GO bonds have a settlement option of receiving 45 cents on the dollar and 35 cents on the dollar, respectively, according to the deck for the proposed agreement.The difference in recoveries stems from a legal move the federally appointed board made in January when they requested that the judge overseeing the bankruptcy proceedings invalidate $6 billion in general obligation bonds. Data is a real-time snapshot *Data is delayed at least 15 minutes. Tennessee. That should help prevent the kind of budget deficits that led the island to borrow too much in the past, said Natalie Jaresko, the executive director of the federal oversight board.“We are doing a great deal in these agreements to protect the people of Puerto Rico,” she said.Although the agreement removes another of the roadblocks facing the island as it tries to claw its way out of debt, a number of hurdles remain.The agreement does not include bonds issued by Puerto Rico’s power authority or the other bodies that provide drinking water and public works on the island. Puerto Rico's default Friday marks the first time that a state or state-like entity (Puerto Rico is a U.S. territory) has failed to pay general obligation bonds since the Great Depression. In that deal, senior bondholders saw 93% recoveries, while junior bondholders received 53%.Additionally, the court also approved the restructuring of around $4 billion for the Government Development Bank's debt.There is also a preliminary agreement in place for about $8 billion in debt issued by the island's beleaguered electric power authority. "It is a very positive development for Puerto Rico that a cross section of large bondholders has worked with the Oversight Board to develop a consensual restructuring agreement that will accelerate the Commonwealth's exit from bankruptcy, respect the lawful priority of valid public debt, and help ultimately restore capital markets access."
South Carolina.
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