Puerto Rico Unveils New Restructuring Deal as Cash Dwindles
- 8 years ago
Puerto Rico on Monday released a new proposal to restructure part of its $70 billion debt to buy time to implement a fiscal growth plan as multimillion-dollar payments loom for a U.S. territory facing dwindling cash reserves.
Government officials propose to exchange $49 billion of debt into up to $28 billion of base bonds and nearly $2 billion of tax-exempt capital appreciation bonds.
Officials said the voluntary exchange proposal would allow creditors to recover the full principal they invested regardless of future economic growth rates.
The plan also includes a special clause for those who live in Puerto Rico and hold certain bonds.
Officials said that group could receive up to $8 billion of local holder base bonds that repays the full principal they originally invested at a 2 percent interest rate.
Government officials propose to exchange $49 billion of debt into up to $28 billion of base bonds and nearly $2 billion of tax-exempt capital appreciation bonds.
Officials said the voluntary exchange proposal would allow creditors to recover the full principal they invested regardless of future economic growth rates.
The plan also includes a special clause for those who live in Puerto Rico and hold certain bonds.
Officials said that group could receive up to $8 billion of local holder base bonds that repays the full principal they originally invested at a 2 percent interest rate.