Judge approves approach to lower Puerto Rico agency’s financial debt
SAN JUAN, Puerto Rico — A federal choose on Wednesday accredited a strategy to restructure some $6 billion of financial debt held by Puerto Rico’s Highways and Transportation Authority as the U.S. territory emerges from bankruptcy.
The strategy cuts the agency’s financial debt by much more than 80% and saves Puerto Rico a lot more than $3 billion in financial debt support payments, according to Gov. Pedro Pierluisi and a federal manage board that oversees the island’s funds.
“The approach creates a stable money foundation to assure Puerto Rico’s roadways and general public transportation are taken care of and improved,” the board stated.
It has beforehand noted that 13% of the island’s highways are in very good situation, in contrast with a median of 84% in the U.S. mainland.
Only one authorities agency on the island has but to restructure its personal debt: Puerto Rico’s Electric powered Electrical power Authority, which holds some $9 billion in credit card debt, the major of any general public company.
Federal Choose Laura Taylor-Swain recently ordered a new spherical of mediation talks to take care of that financial debt immediately after the preceding talks unsuccessful. She also permitted the board to go to court docket to ascertain how a lot revenue bondholders searching for to recover their investments must obtain.
The personal debt restructurings appear after Puerto Rico’s governing administration declared in 2015 that it was unable to pay out its far more than $70 billion public financial debt load. In 2017, it submitted for the most important U.S. municipal individual bankruptcy in heritage.
SAN JUAN, Puerto Rico — A federal choose on Wednesday accredited a strategy to restructure some $6 billion of financial debt held by Puerto Rico’s Highways and Transportation Authority as the U.S. territory emerges from bankruptcy.
The strategy cuts the agency’s financial debt by much more than 80% and saves Puerto Rico a lot more than $3 billion in financial debt support payments, according to Gov. Pedro Pierluisi and a federal manage board that oversees the island’s funds.
“The approach creates a stable money foundation to assure Puerto Rico’s roadways and general public transportation are taken care of and improved,” the board stated.
It has beforehand noted that 13% of the island’s highways are in very good situation, in contrast with a median of 84% in the U.S. mainland.
Only one authorities agency on the island has but to restructure its personal debt: Puerto Rico’s Electric powered Electrical power Authority, which holds some $9 billion in credit card debt, the major of any general public company.
Federal Choose Laura Taylor-Swain recently ordered a new spherical of mediation talks to take care of that financial debt immediately after the preceding talks unsuccessful. She also permitted the board to go to court docket to ascertain how a lot revenue bondholders searching for to recover their investments must obtain.
The personal debt restructurings appear after Puerto Rico’s governing administration declared in 2015 that it was unable to pay out its far more than $70 billion public financial debt load. In 2017, it submitted for the most important U.S. municipal individual bankruptcy in heritage.