In 2016 the United States enacted the PROMESA statute to allow territories to declare bankruptcy. That prompted the creation of the Financial Oversight and Management Board for Puerto Rico (FOMB), which in September announced a restructuring that cut the island’s debts by 33% from $129 billion to $86 billion. In Puerto Rico’s complicated maze of debt structures, the oversight board’s plan reflects a compromise between retirees, bond holders, and the public employees’ union.
One likely controversial issue is the latest bonds, which the FOMB argues are illegal because they took the island over its legal debt limit. The issue is still litigated. If bondholders win, they would get 64 cents on the dollar. If they lose (a court decision that their bonds were illegal), they could get nothing.
At Distressed Investing 2019, FOMB presents its plan for Puerto Rico’s recovery.
The panel will be moderated by Andrew Scurria, a reporter who covers financial distress and debt restructuring for The Wall Street Journal and WSJ Pro Bankruptcy, with an emphasis on energy companies, retailers and municipalities.
Make sure you’re in the room when the professionals who designed Puerto Rico’s debt restructuring present their plan for recovery.
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