{"id":17260,"date":"2016-02-01T15:31:49","date_gmt":"2016-02-01T20:31:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17260"},"modified":"2016-02-01T15:32:10","modified_gmt":"2016-02-01T20:32:10","slug":"puerto-rico-generously-offers-to-repay-54-cents-on-the-dollar-to-creditors-owed-70-billion","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17260","title":{"rendered":"Puerto Rico “Generously” Offers To Repay 54 Cents On The Dollar To Creditors Owed $70 Billion"},"content":{"rendered":"

Puerto Rico “Generously” Offers To Repay 54 Cents On The Dollar To Creditors Owed $70 Billion<\/a><\/h3>\n

Height Securities\u2019 Daniel Hanson is \u201cdeeply skeptical\u201d about the viability of Puerto Rico\u2019s proposal for restructuring the island\u2019s $70 billion in debt.<\/p>\n

Hanson, in a note out late last week, said Governor Alejandro Padilla was \u201csignificantly unlikely\u201d to present a \u201ccredible\u201d plan and that the commonwealth\u2019s offer to creditors may be \u201claughably low<\/strong>.\u201d<\/p>\n

As a reminder, Puerto Rico defaulted on some of its non-GO debt last month, presaging more missed payments this year as creditors come calling in May and July.<\/p>\n

So far, the island has been able to avoid a messy default on its GO debt by utilizing a revenue “clawback” mechanism that effectively allows the commonwealth to divert money earmarked for non-GO debt, a move decried by the monolines.<\/p>\n

In December, the market thought there might be a light at the end of the tunnel when creditors and the island’s power utility managed to get the bond insurers to go along with a $8 billion restructuring for PREPA, but that fell apart a week ago when lawmakers failed to vote on a new tax. Ultimately, the deadline to pass the bill was extended to February 16, but the fraugh negotiations underscore how precarious the situation has become.<\/p>\n

On Monday, we got our first look at Puerto Rico’s opening salvo in what’s likely to be protracted battle to tackle the entire debt burden.<\/p>\n

“Puerto Rico on Monday announced a major exchange offer to creditors that could reduce its debt by about $23 billion, the opening salvo in efforts to resolve the island’s crippling $70 billion debt crisis,”\u00a0Reuters reports<\/a>, adding that “the new plan would reduce a $49.2 billion chunk of Puerto Rico’s debt by about 46 percent, to $26.5 billion<\/strong>, by offering creditors payout reductions under a new, so-called “base bond” with better legal protections.”<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Puerto Rico “Generously” Offers To Repay 54 Cents On The Dollar To Creditors Owed $70 Billion Height Securities\u2019 Daniel Hanson is \u201cdeeply skeptical\u201d about the viability of Puerto Rico\u2019s proposal for restructuring the island\u2019s $70 billion in debt. Hanson, in a note out late last week, said Governor Alejandro Padilla was \u201csignificantly unlikely\u201d to present […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[12150,1719,3325,12149,195,200,3824,683,4318],"class_list":["post-17260","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alejandro-padilla","tag-bond","tag-creditors","tag-daniel-hanson","tag-debt","tag-default","tag-puerto-rico","tag-reuters","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17260"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17260\/revisions"}],"predecessor-version":[{"id":17262,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17260\/revisions\/17262"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}