A federal judge yesterday ordered the trustee for Puerto Rico’s COFINA bonds not to make a $16 million payment due on June 1, allowing creditors to litigate competing claims to the money that could be central to how the bankrupt U.S. territory restructures debt, Reuters reported. U.S.
Puerto Rico in Distress
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Puerto Rico Gov. Ricardo Rosselló has just the solution for the decade-long recession and crippling debt crisis his island is facing: U.S. statehood, Politico reported on Friday. Trouble is, Rosselló has little support from Congress for his dream of making the territory the 51st state — and possibly even less from the Trump administration.
Puerto Rico says it owns $400 million in cash being held by a bondholder trustee, raising an issue at the heart of the territory’s $74 billion bankruptcy, Bloomberg News reported yesterday.
A relatively paltry $16 million has ignited a skirmish among bondholders over who will get paid first and who does not in Puerto Rico’s $74 billion bankruptcy, Bloomberg News reported yesterday. The dispute revolves around interest that’s due June 1 to holders of sales-tax bonds known as Cofinas. Mathematically, the $16 million is barely a rounding error.