Hedge funds that own Puerto Rico general obligation bonds are fracturing into competing groups as they jockey for priority in the U.S. territory’s financial restructuring, WSJ Pro Bankruptcy reported.
Puerto Rico in Distress
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Puerto Rico’s financial restructuring is ricocheting in a new direction after a federal court ruling threatened to leave the U.S. territory without functioning fiscal supervisors for the first time since its default on its debt, WSJ Pro Bankruptcy reported. The U.S.
Reversing the district court, the First Circuit threw the Puerto Rico debt restructuring into a cocked hat by declaring that the appointment of the members of the Financial Oversight and Management Board of Puerto Rico violated the Appointments Clause of the Constitution because they were not nominated by the President and confirmed by the Senate, according to an analysis in yesterday's <em&
Puerto Rico’s Sales Tax Financing Corporation, known as COFINA, yesterday issued $12 billion of new bonds as a federal court-approved deal between the bankrupt U.S. commonwealth and its creditors took effect, according to island officials, Reuters reported. The plan of adjustment approved by U.S. District Court Judge Laura Taylor Swain on Feb.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.