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Puerto Rico GO, Public Building Authority bondholders form group

By on February 27, 2019

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

SAN JUAN – The Lawful Constitutional Debt Coalition, which represents certain holders of Puerto Rico general obligation (GO) and Public Building Authority (PBA) bonds issued before March of 2012 announced the formation of a group to negotiate the restructuring of their debt.

In a statement, Susheel Kirpalani, of Quinn Emanuel Urquhart & Sullivan LLP, as representative of the coalition, said it will be a “commercial and solutions-oriented” participant in the ongoing process to restructure Puerto Rico’s constitutional debt.

“Our hope is that like-minded stakeholders and creditors will want to collaborate with us to pursue a consensual restructuring agreement that respects both the unquestionable lawful priority of early vintage constitutional debt and the PBA structure that has been in place since the adoption of the territory’s constitution. We believe this outcome can yield meaningful debt relief for the Commonwealth, accelerate the island’s economic recovery and ultimately restore capital markets access. As we work towards this type of constructive resolution, our Coalition is committed to protecting the rights of early vintage GO and PBA debt by ensuring its lawful priority status is respected,” he said.

Quinn Emanuel Urquhart & Sullivan LLP and Reichard & Escalera LLC are serving as the coalition’s legal counsel, with Miller Buckfire & Co. acting as its financial adviser.

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