Puerto Rico fiscal board finalizes amended plan support agreement with Cofina bondholders
SAN JUAN – The Financial Oversight and Management Board for Puerto Rico announced Friday that it finalized the Amended and Restated Plan Support Agreement (A&R PSA) with Puerto Rico’s government and Sales Tax Financing Corp. (Cofina by its Spanish acronym), as well as bond insurers, senior and junior bondholders, and the Bonistas del Patio bondholder group.
The fiscal board said it also secured support from Aurelius Capital Master Ltd. and Six PRC Investments LLC, an affiliate of Monarch Alternative Capital, significant holders of Cofina senior and junior bonds, as part of the agreement.
The board stressed that the amended agreement represents the restructuring of nearly 24% percent of Puerto Rico’s “crushing debt,” and provides the commonwealth “a 32% reduction in COFINA debt and more than $17 billion in debt service savings. It is expected that the COFINA Plan of Adjustment and compromise to be approved will be presented” next month in court, under the Puerto Rico Oversight, Management and Economic Stability Act’s (Promesa) Title III proceeding.
The additional parties to the plan-support agreement, “which requires all parties thereto to support approval of the COFINA Plan of Adjustment and the compromise and settlement of the Commonwealth-COFINA Dispute, now include certain members of the Ad Hoc Group of GO Bondholders, intervenors in the Commonwealth-COFINA dispute litigation, and also requires, Autonomy Capital, represented by Latham & Watkins LLP, and the other members of the Ad Hoc Group of GO Bondholders, represented by Paul Weiss Rifkind Wharton & Garrison LLP and Robbins Russell Englert Orseck Untereiner & Sauber LLP, not to oppose confirmation of the COFINA Plan of Adjustment and the compromise to be approved in the Commonwealth case,” the board wrote in its new release.