Puerto Rico won court approval for a restructuring deal that wipes out one-third of its $18 billion in sales-tax bond debt, a milestone in its quest to fix its broken finances. A similar outcome is likely in Puerto Rico, where a pending settlement has holders of general obligation bonds getting a small amount of cash plus some new IOUs. Under the restructuring plan released in September, the board suggested paying the general obligation bondholders $11.8 billion, including $2 billion up front. Puerto Rico Reaches Deal to Settle $35 Billion in Debt. SAN JUAN, Puerto Rico (AP) — Puerto Rico’s fragile economy is facing an uncertain future after the island’s governor rejected a settlement announced late Sunday with bondholders that would reduce the U.S. territory’s public debt by 70%. Puerto Rico has reached a deal with creditors who hold $35 billion in its general obligation bonds, passing an important milestone as it tries to resolve its $129 billion debt crisis.. It will also slash the bankrupt island's debt service, including principal and interest over the next 30 years, by roughly half to $21 billion from $43 billion. Puerto Rico Bankruptcy Judge Freezes Bond Payments. In 2014, Standard & Poor’s downgraded Puerto Rico’s general obligation bonds to “junk bond” status – meaning that they were considered among the riskiest of bond investments available. By Andrew Scurria . Puerto Rico first defaulted on its general obligation bonds in July 2016, when it failed to pay roughly $1 billion owed to its creditors and hasn't made any payments since. Puerto Rico has reached a deal with creditors who hold $35 billion in its general obligation bonds, passing an important milestone as it tries to resolve its $129 billion debt crisis. The board argues that the bonds issued in 2012 and 2014 violated the terms of Puerto Rico's constitution and therefore are not valid. Se derrumba el enorme telescopio de Puerto Rico que aparece en la película de James Bond notiulti | December 2, 2020 December 2, 2020 | Tecnología En noviembre, las revisiones de ingeniería y la Universidad de Florida Central concluyeron que los esfuerzos para reparar la estructura serían demasiado peligrosos y que habría que demolerla. Swain’s decision is under appeal. The oversight board, which was set up in 2016, has also engaged in strong-arm negotiations, including challenging the supremacy of general-obligation creditors, who are accustomed to being paid first. Santander to Pay $6.4 Million in Puerto Rico Bond Settlement For the second time in less than a month, a global bank with operations in Puerto Rico has agreed to pay millions of dollars to settle accusations that it violated industry rules when selling the island’s bonds to customers. Additionally, the court also approved the restructuring of around $4 billion for the Government Development Bank's debt. The U.S. government isn’t liable for losses on $3 billion in Puerto Rico pension bonds, a federal judge said, rejecting efforts to put U.S. taxpayers on the hook for compensating investors. Though the island’s economy remains fragile — it was battered by a major hurricane that caused a monthslong power failure in 2017 and recently by a series of earthquakes — the government has built up a large supply of cash. A protester at Puerto Rico’s Capitol building last month. The deal, which took about three months of negotiations, is expected to be filed with the court within 30 days with bondholders anticipating the plan's ultimate approval by early 2020, according to a source familiar with the settlement agreement. The island’s other colonial settlements, also predominantly coastal, expanded slowly. Puerto Rico General Obligation Bondholders Announce Agreement on Settlement Framework for Commonwealth-COFINA Dispute May 14, 2018 10:32 AM Eastern Daylight Time The territory has agreed to a deal with some of its bondholders to restructure debt. Ricardo Arduengo/Agence France-Presse — Getty Images. It is a sign, though, that mediation to resolve Puerto Rico’s debts, … It also said general-obligation bonds brought to market starting in 2012 had exceeded the territory’s debt limit and would have to be voided. Puerto Rico's federal supervisors are making a final push to write down $18 billion in sales-tax bonds under a settlement that would mark their largest renegotiation yet of the U.S. territory's crushing debts. If a plan to restructure $35 billion of Puerto Rico’s bonds is approved, investors who own nearly $6. We want to hear from you. The agreement, contained in a regulatory filing made Sunday evening by the territory’s federal oversight board, revises parts of the debt-adjustment plan it announced last year and makes peace with some of its most litigious creditors, potentially opening a shorter path out of bankruptcy. UBS settles with Puerto Rico regulators for $5.2M over bond improprieties UBS Financial Services Inc. of Puerto Rico, a unit of UBS Wealth Management Americas, has agreed to pay… October 7, 2014 Those suits were put on hold after the judge presiding over Puerto Rico’s bankruptcy, Laura Taylor Swain, ordered both sides into mediation. The proposed settlement would reduce the islands’ bond debt from approximately $35 billion … This meant that both (i) Puerto Rico would be less likely to raise money by selling additional bonds, and (ii) any bonds that it did sell would generally have to pay a higher rate of interest. Puerto Rico's fragile economy is facing an uncertain future after Vazquez rejected on Sunday, Feb. 9, 2020, a settlement announced late Sunday with bondholders that would reduce the U.S. territory's public debt … Ex-Morgan Stanley broker at center of Puerto Rico bond disputes Hurricane damage to island may complicate settlement of claims on munis and closed-end funds. The Government of Puerto Rico issued a statement rejecting the deal, citing the administration's strong opposition to pension cuts, which are included in the amended fiscal plan the restructuring deal is premised on. Puerto Rico (Spanish for 'Rich Port'; abbreviated PR, Taino: Boriken, Borinquen), officially the Commonwealth of Puerto Rico (Spanish: Estado Libre Asociado de Puerto Rico, lit. The Puerto Rican government-debt crisis is a financial crisis affecting the government of Puerto Rico. The agreement, which is on the framework for the plan of adjustment, provide for more than a 60% average haircut for all $35 billion, a 36% haircut on pre-2012 general obligation or "GO" bonds, and a 27% haircut on public authority bonds that carry a constitutional guarantee on payment. Bank OF N Y (NYSE:BK) Historical Stock Chart. The deal still requires the approval of Puerto Rico’s Legislature, but it would provide for holders of the island’s general-obligation bonds to exchange them for a combination of cash and new debt. The agreement with general-obligation bondholders gives them more cash up front and more attractive debt, while costing the territory $1 billion less than previously expected. Puerto Rico: Vulture Funds to ... JUAN GONZÁLEZ: Well, this is the first legally approved settlement of the Puerto Rico—of Puerto Rico’s $74 billion in debt. Puerto Rico Debt Plan Leaves Investors With a Choice: Lose Money or Fight. Massive Puerto Rico telescope featured in James Bond movie collapses By Joey Roulette 4 hrs ago Families sue California, claiming state failed to … Sign up for free newsletters and get more CNBC delivered to your inbox. The deal with supporting creditors "will reduce the amount of Commonwealth-related bonds outstanding to less than $12 billion," the oversight board said in a press release. Of the roughly $13 billion in outstanding GO bonds, the bonds issued pre-2012 would receive 64 cents on the dollar, while the 2012 and 2014 GO bonds have a settlement option of receiving 45 cents on the dollar and 35 cents on the dollar, respectively, according to the deck for the proposed agreement. A Puerto Rico public adjuster bond is required of all participants in the industry. In February, U.S. District Judge Laura Taylor Swain, who is overseeing the record bankruptcy-like proceedings, approved a deal to restructure about $17 billion of sales tax backed bonds, known as COFINA for the Spanish acronym. Puerto Rico, oficialmente el Estado Libre Asociado de Puerto Rico, es uno de los territorios no incorporados de los Estados Unidos y uno de los dos estados libres asociados con estatus de autogobierno de los Estados Unidos de América.Se localiza en América, al noreste del Caribe, al este de la isla de La Española y al oeste de las Islas Vírgenes de los Estados Unidos. It would trim the island’s bond obligations to $41 billion from $75 billion — a 45 percent reduction. Those bondholders said the board’s offer amounted to illegal discrimination and vowed to sue. There is also a preliminary agreement in place for about $8 billion in debt issued by the island's beleaguered electric power authority. Among them were Aurelius Capital Management, which has pursued aggressive litigation strategies in other debt meltdowns, most famously in Argentina, where the lawsuits took years to resolve. "Not one word of the PSA (Plan Support Agreement) is considered acceptable to AAFAF," Christian Sobrino Vega, the CEO and president of the Puerto Rico Fiscal Agency and Financial Advisory Authority said in the statement. Although the agreement removes another of the roadblocks facing the island as it tries to claw its way out of debt, a number of hurdles remain. That’s mainly because it has been sitting on the money it would have been paying to bondholders had it not defaulted in 2016. Puerto Rico has come to terms with bondholders on how to divide sales-tax revenue among them, marking the largest debt settlement to date as the island works its way through bankruptcy. Data is a real-time snapshot *Data is delayed at least 15 minutes. Puerto Rico has reached agreement with a large portion of its general obligation bond holders—and the holders of the constitutionally protected “Puerto Rico Building Authority bonds.”. "It is a very positive development for Puerto Rico that a cross section of large bondholders has worked with the Oversight Board to develop a consensual restructuring agreement that will accelerate the Commonwealth's exit from bankruptcy, respect the lawful priority of valid public debt, and help ultimately restore capital markets access." Zamansky LLC es una firma dedicada a asegurar fondos de UBS Puerto Rico. And, on Wednesday, the oversight board announced a tentative deal to restructure more than $50 billion in unfunded pension liabilities. That would have meant the investors holding them — mostly hedge funds and other financial institutions — would have to pay back any interest or principal they had received. The new debt would be an even split of general-obligation bonds and new bonds backed by Puerto Rico’s sales tax — a more attractive option than the old proposal, which included only general obligation bonds. But if they lost — if the court confirmed that their bonds were invalid — those bondholders would get nothing. The intervention of the masses will ultimately be decisive in overturning this gift to the hedge funds in the form of the COFINA settlement and canceling the entire debt imposed by the banks on the people of Puerto Rico and on working people worldwide. Under the new agreement, the debt would be settled for $10.7 billion, with $3.8 billion up front. Puerto Rico - Puerto Rico - Settlement patterns: In the early 16th century Spanish explorers founded San Juan, which prospered throughout the colonial period as a trading port. Puerto Rico won court approval for a restructuring deal that wipes out one-third of its $18 billion in sales-tax bond debt, a milestone in its quest to fix its broken finances. The new terms, Mr. Carrión said, won “significantly more support from bondholders” than Puerto Rico had until now. Under the new debt agreement, commonwealth creditors would receive $10.7 billion in new debt, half in GO bonds and half in Puerto Rico Sales Tax Financing Corp. (Cofina by its Spanish acronym) junior lien bonds, which will be created, as well as $3.8 billion in cash. A group of holders of Puerto Rican general obligation bonds said it is not ready to support a proposed deal to settle a key dispute in the U.S. territory's $120 billion bankruptcy. Restated Sales Tax Revenue Bond Resolution (as amended and supplemented from time to time, the “Resolution”), adopted on July 13, 2007, by the Puerto Rico Sales Tax Financing Corporation (“COFINA”), pursuant to which COFINA issued the above-referenced senior and subordinate sales tax revenue bonds (the “Bonds… Puerto Rico’s financial collapse led Congress to create a way for the territory to restructure its debt. Spanish settlement of Puerto Rico began in the early 1500s shortly after the formation of the Spanish state in 1493 (continuing until 1898 as a colony of Spain) and continues to the present day.On 25 September 1493, Christopher Columbus set sail on his second voyage with 17 ships and 1,200–1,500 men from Cádiz, Spain. In that deal, senior bondholders saw 93% recoveries, while junior bondholders received 53%. MBIA jumped nearly 8 percent, and Ambac […] "These were tough negotiations and we are confident we reached the best deal possible for Puerto Rico to move on from decades of incurring debt we could not afford.". “We are doing a great deal in these agreements to protect the people of Puerto Rico,” she said. All Rights Reserved. Puerto Rico's fragile economy is facing an uncertain future after the island's governor rejected a settlement announced late Sunday with bondholders … Póngase en contacto con un abogado de fraude de valores de Puerto Rico en nuestra firma hoy si tiene preguntas o inquietudes con respecto a las inversiones realizadas en PR. The island's oversight board has been making some progress in 2019 after being appointed in 2017 to oversee the $73 billion restructuring, which is the largest in the history of the U.S. municipal bond market. If the 2012 and 2014 bondholders decide not to settle for the proposed amounts, they have the option to litigate for pari recovery with pre-2012 bonds. El asentamiento español de Puerto Rico comenzó a principios del siglo XVI, poco después de la formación del estado español en 1493 (continuando hasta 1898 como colonia de España) y continúa hasta nuestros días.El 25 de septiembre de 1493, Cristóbal Colón zarpó en su segundo viaje con 17 barcos y entre 1.200 y 1.500 hombres de Cádiz, España. 2 Years : From Jul 2016 to Jul 2018. Puerto Rico’s financing arm, the Government Development Bank. The deteriorating telescope's 900-ton instrument platform, suspended by cables 450 feet (137 meters) above a 1,000-foot-wide (305 meters) bowl-shaped reflector dish, fell on Tuesday morning, the U.S. National Science Foundation said. "And we can confidently state that no legislation, executive action or other administrative approval required from the Government of Puerto Rico will be taken to implement an agreement that directly or indirectly supports a Plan of Adjustment that cuts payments to our retirees," Sobrino Vega said. The agreement, which is on the framework for the plan of adjustment, provide for more than a 60% average haircut for all $35 billion, a 36% haircut on pre-2012 general obligation or "GO" bonds, and a 27% haircut on public authority bonds. She has scheduled hearings on the plan for October. While angry bondholders threatened lawsuits, the board used that threat as leverage. The agreement does not include bonds issued by Puerto Rico’s power authority or the other bodies that provide drinking water and public works on the island. If it succeeds, states struggling with pension costs might seek a similar option. Insurers get a lift as investors cheer Puerto Rico bond settlement Posted By: admin 0 Comment bond , cheer , Insurers , investors , lift , Puerto , Rico , settlement Puerto Rico has come to terms with bondholders on how to divide sales-tax revenue among them, marking the largest debt settlement to date as the island works its way through bankruptcy. We can help you Reduce your Debt Raise your Credit Scores Increase your Income and Take Control of your Personal Finances with Debt Management Puerto Rico. It offered holders of pre-2012 bonds 64 cents on the dollar, and those holding later vintages either 45 cents or 35 cents on the dollar. One of the insurers’ point of contention is the plan is unconfirmable. A Division of NBCUniversal. Santander Puerto Rico helped to exacerbate the impending economic disaster by allowing investors to lose billions in Santander Puerto Rico municipal bond funds. The struggle in Puerto Rico against the colony’s robbery by finance capital is ongoing. Podemos ayudarlo a recuperar pérdidas. puerto rico comwlth public impt ref bds GEN PURP/PUB IMPT ULT G.O. The agreement grew out of those talks, and it will give all three groups of general-obligation bondholders better recovery rates. The crisis began in 2014 when three major credit agencies downgraded several bond issues by Puerto Rico to "junk status" after the government was unable to demonstrate that it would be able to pay its debt. José Carrión, the chairman of the oversight board, called the deal “a win for Puerto Rico” that would also shorten the maturities of its new debts by a decade. The territory was able to improve the deal for bondholders because of a recent economic windfall. Puerto Rico Bond Trading and Outstanding Debt Part II - Top 25 Most Actively Traded Securities The following eight graphs illustrate price movements of the 25 most-traded securities through December 2017 based on the information provided in Part I.