Wednesday, November 21, 2018

Hedge funds join Bonistas del Patio to negotiate Puerto Rico debt

By on November 9, 2018

SAN JUAN – Several hedge funds that together hold about $3 billion in debt have banded together as the Commonwealth Bondholder Group to negotiate a restructuring of their Puerto Rico debt.

Davis Polk & Wardwell LLP, as counsel, and Ducera Partners, as financial adviser, have been retained by the Commonwealth Bondholder Group and Bonistas del Patio Inc., a local nonprofit organization advocating for the interests of local bondholders who hold in excess of an additional $1 billion of debt issued or guaranteed by the commonwealth, to work together in achieving the commonwealth’s debt restructuring.

The Commonwealth Bondholder Group and Bonistas also intend to work cooperatively with several dozen Puerto Rico cooperatives and other stakeholders to achieve a consensual resolution to the commonwealth’s case under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act.

The Commonwealth Bondholder Group comprises funds managed or advised by Aurelius Capital Management LP, Autonomy Capital (Jersey) LP, Brigade Capital Management LP, Canyon Capital Advisors LLC, Davidson Kempner Capital Management LP, Monarch Alternative Capital LP, and OZ Management LP.

The group has also retained Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP and Goldin Associates, LLC with respect to certain matters.

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