Monday, June 24, 2019

Puerto Rico fiscal board: Gov’t debt deal to be presented in 30 days

By on June 12, 2019

The U.S. District Court of Puerto Rico. (CB file)

Bond insurer Syncora expected to join electric power utility’s restructuring support agreement

SAN JUAN — Puerto Rico’s Financial Oversight and Management Board may be filing, in 30 days, a debt adjustment plan for the commonwealth, the panel’s lead attorney, Martin Bienenstock, announced.

In the omnibus hearing underway Wednesday, Bienenstock spoke of the agreement reached between the Official Committee of Retirees and the board, which would eliminate cuts to pensions of retirees receiving less than $1,200 a month and cut others 8.5 percent. Similar agreements were reached with the Teachers Association and the United Public Servants.

Peter Friedman, a lawyer for Puerto Rico’s Fiscal Agency and Financial Advisory Authority, said the government opposes any pension cuts and will oppose agreements with unions.

Bienenstock also said that bond insurer Syncora Guarantee is expected to join the restructuring support agreement (RSA) that the Puerto Rico Electric Power Authority signed with the Ad Hoc Group of Bondholders and Assured Guaranty. It was not immediately clear whether the inclusion of Syncora results in reaching the percentage of creditors needed to move the RSA forward.