Puerto Rico Electric Power Authority, the island's ailing power utility, yesterday reopened a long-agreed debt restructuring deal that drew ire from bondholders and put the stock of credit insurers under further selling pressure, Reuters reported.
Puerto Rico in Distress
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Puerto Rico's benchmark government bond slumped to an all-time low on Monday after competing groups of bondholders stepped up their legal battle over who should be paid first out of a smaller-than-expected pool of cash, Reuters reported yesterday.
A new fiscal plan that leaves the Puerto Rico with less money to cover its debts pushed the value of certain bonds down as much as 9 percent last week through Thursday, according to Municipal Securities Rulemaking Board data, the Wall Street Journal reported.
Puerto Rico Governor Ricardo Rossello said on Monday that he does not want to "destroy" the pending debt restructuring deal for the island's ailing power utility, but wants to "get a better one" as the U.S. territory's fiscal situation worsens, Reuters reported.