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Puerto Rico fiscal board, gov’t welcome court approval of Government Development Bank restructuring

By on November 6, 2018

SAN JUAN – The Financial Oversight and Management Board for Puerto Rico welcomed Tuesday Judge Laura Taylor Swain’s decision to approve the Government Development Bank’s (GDB) restructuring pursuant to Title VI of thePuerto Rico Oversight, Management and Economic Stability Act (Promesa).

In a release, the board wrote that, on Nov. 2, it “certified that subject to the court’s approval, the conditions to effectiveness of the Qualifying Modification under PROMESA 601(m) have been satisfied. Today, Judge Swain has announced at the hearing that she will approve the GDB Qualifying Modification as satisfying the criteria under PROMESA.”

Natalie Jaresko, the executive director of the board added in the release that the “Court’s approval represents a major milestone in the restructuring of Puerto Rico’s debt obligations,” and that the oversight panel congratulates the Government of Puerto Rico for its efforts and looks forward to achieving other consensual deals.

“This is a historic achievement for the final resolution of the GDB and a decisive victory in the fiscal recovery of the island. It is the first consensual agreement approved by the Federal District Court under Title VI of PROMESA. Once again, we evince the credibility of the efforts of the administration of Governor Ricardo Rosselló Nevares and our commitment to regain access to capital markets through negotiations in good faith, always protecting the best interests of Puerto Ricans and municipalities,” Christian Sobrino Vega, the GDB’s president and executive director of Puerto Rico’s Fiscal Agency and Financial Advisory Authority, said in a separate release.

The official added that the agreement had the participation of 74.85 percent of the creditors, “of which 97.42 percent voted in favor of the restructuring of the GDB.”

“I am glad we have taken these steps toward the building of a new Puerto Rico,” Judge Swain was quoted as saying in the release.

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