The Puerto Rico Aqueduct & Sewer Authority wants to issue the debt through a new agency to finance construction work delayed by the government’s fiscal crisis, Bloomberg News reported yesterday.
Puerto Rico in Distress
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U.S. District Court Judge Francisco Besosa declined Friday notices of automatic stay filed by Puerto Rico to freeze lawsuits filed by a bondholders group and three firms to invalidate the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act, Caribbean Business reported on Saturday.
Puerto Rico on Friday defaulted on $779 million in general obligation bonds, and while the default is no surprise given the island’s financial woes, it’s still bad news, and has led to a downgrade from Fitch Ratings, Barron’s reported today.
Three major bond insurers are bracing for the possibility of a historic payout if Puerto Rico defaults on debt due today, the Wall Street Journal reported. Puerto Rico Gov. Alejandro García Padilla yesterday reiterated statements that the commonwealth cannot afford to make the payment and cited an April law that allows Puerto Rico to temporarily stop paying bond debt.