Hedge Funds Sue to Freeze Puerto Rico Bank’s Assets
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The Government Development Bank has a debt payment of about $422 million due on May 1, and credit analysts doubt it has enough cash to cover it. CreditAlvin Baez/Reuters
A group of hedge funds asked a federal court in San Juan on Monday to freeze the assets of Puerto Rico’s powerful Government Development Bank, claiming it was insolvent and appeared to be spending what cash it had left to prop up other parts of the island’s troubled government.
The bank had failed to provide financial information that creditors were entitled to under federal law, the hedge funds said in a lawsuit. They asked the United States District Court in San Juan to bar further cash transfers by the bank, other than those essential to the safety and well-being of the island’s residents…
Hedge Funds Sue to Freeze Puerto Rico Bank’s Assets
