Feb
01
Puerto Rico Proposes 46% Reduction of Debt in Restructuring
By-
General obligations receive more cash than sales-tax bonds
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Growth bonds dependent on revenue exceeding projections
Puerto Rico is seeking to cut its debt load by 46 percent in its first offer to investors, a proposal that may face revisions as bondholders fight to get the most repayment.
The commonwealth unveiled its plan on Monday to reduce the island’s obligations and help restart an economy that’s failed to grow in the past decade. The proposal for a voluntary exchange would cut the island’s debt to $26.5 billion from $49.2 billion, put off all interest payments until the 2018 fiscal year and affect even general-obligation bonds, which have the strongest repayment pledge, according to a restructuring proposal posted on the Government Development Bank website…
Puerto Rico Proposes 46% Reduction of Debt in Restructuring
