Puerto Rico Creditors Are Said to Unite for Counterproposal
- Creditors reacting to revised proposal from commonwealth
- Puerto Rico said to replace `growth bonds' with CABs in plan
Some of Puerto Rico’s largest creditors, unsatisfied with a commonwealth debt-reorganization proposal and the direction of Congressional legislation, are working together to draft their own restructuring plan, according to four people with direct knowledge of the talks.
Representatives of bondholder groups and bond insurance companies met Monday at the New York office of PJT Partners Inc., which is advising MBIA’s National Public Finance Guarantee Corp., to begin crafting together a plan that would reduce Puerto Rico’s $70 billion in obligations, the people said, who asked for anonymity because the discussions are private. The commonwealth last week gave its creditors a revised restructuring proposal, which the people say includes losses that are larger than they’re willing to accept.