GOs may come to an agreement before stay expires
SAN JUAN – General obligation (GO) bondholders are focused on reaching a restructuring agreement with the Puerto Rican government before the Puerto Rico Oversight, Management & Economic Stability Act (Promesa) stay expires.
“We will take the governor’s word that paying the debt is important and we are confident that we will come to an agreement. We are Puerto Rico’s partner for its growth,” Justin Peterson, an adviser to the GO bondholder ad hoc group, told Caribbean Business.
The bondholders’ goal is that once the board approves a fiscal plan then they can begin negotiations with the government to restructure its debt and reach an agreement sometime between March and April.
The agreement sought by the GO bondholders is long-term in nature, with financing, and they have been emphatic in saying they are sitting at the bargaining table in good faith to reach an agreement with the government of Puerto Rico.
If an agreement with the government is not possible, the group is ready for the litigation process established in Promesa’s Title III.
“We urge the governor to join our lawsuit against Cofina (Spanish acronym for the Sales Tax Financing Corp.] to recover that which belongs to Puerto Rico. Cofina is taking billions of dollars belonging to the Commonwealth. This is not a dispute between creditors, this is money that belongs to the government of Puerto Rico,” Peterson said.