Board reaches tentative deal to lower Puerto Rico debt
SAN JUAN, Puerto Rico (AP) — A federal control board that oversees Puerto Rico’s finances announced Wednesday that it has reached an agreement in principal with creditors to reduce a portion of the U.S. territory’s more than $70 billion public debt load.
The board said the tentative deal followed a mediation process with creditors holding some $7 billion worth of general obligation and Public Building Authority bonds issued by the U.S. territory.
“What we achieved at this point is a realistic proposal that will open a path to recovery from bankruptcy,” said board chairman David Skeel.
As a result, the board asked a federal judge overseeing Puerto Rico’s bankruptcy-like process for an extension to file an amended plan of adjustment.
Read more: https://apnews.com/article/financial-markets-puerto-rico-pedro-pierluisi-e051c44a476cccb8b2cbdab232ba9328
