Little enthusiasm among creditors to negotiate Puerto Rico debt
SAN JUAN – Advisers to the Financial Oversight & Management Board sent letters to different groups of bondholders to determine their willingness to participate in a proposed mediation meeting as part of the debt-restructuring process, but there is not much enthusiasm to go to the negotiating table.
Bonistas del Patio, a group that represents more than 60,000 local bondholders, said Wednesday that the oversight board needs to amend its fiscal plan to devote more resources to debt payments. The board is proposing to cut the debt by over 70%.
“We feel obligated to be at the table, but we share the concerns of other bondholders that the fiscal plan is only providing $700 million to pay the debt service,” Bonistas del Patio head Rafael Rojo said, adding that information obtained by the group shows there is little willingness to negotiate among creditors.
The letter was sent by Proskauer Rose, an international advisory firm that deals with reorganizations and debt restructuring.
“As long as there is negotiation, we will be there… But we are concerned about this invitation because it is an artificial one as there is little money to pay debt,” he said.