Puerto Rico to Offer Universal Debt Exchange Plan to Creditors
- Government Development Bank met with investors in New York
- Commonwealth wants voluntary debt exchange with debt holders
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Puerto Rico plans to present creditors with a universal debt-exchange proposal that would allow bondholders owning securities with various repayment priorities to swap their debt for a single new bond.
The island’s Government Development Bank outlined the proposal in a meeting Friday in New York with advisers of the commonwealth’s major bondholders, according to Barbara Morgan, an outside spokeswoman for the agency. There will probably be a consolidation of repayment sources to pay off the new debt, she said.