Hedge Funds Disclose Just How Many Puerto Rico Bonds They Own
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Ad hoc group holds $3.3 billion of commonwealth debt
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Puerto Rico owes $13 billion of general-obligation debt
A group of hedge funds that owns $3.3 billion of Puerto Rico bonds disclosed in court documents the amount that each of them holds.
The disclosure is related to the territory’s May 3 bankruptcy, which will allow Puerto Rico and its agencies to reduce the $74 billion of debt left after years of economic decline and borrowing to cover operating expenses. The group includes distressed-debt buyers and municipal mutual fund Franklin Mutual Advisers LLC.
The group claims that general-obligation bonds must be paid before other types of Puerto Rico debt because the island’s constitution gives those securities the highest claim to the government’s cash. The group wants Puerto Rico’s sales-tax revenue to help repay general-obligation debt. The island sold sales-tax bonds backed by that revenue stream…
Hedge Funds Disclose Just How Many Puerto Rico Bonds They Own
