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Knighthead's Wagner Says Puerto Rico Lacks Will to Repay Debts

  • Puerto Rico crisis not `an ability to pay problem,' he says
  • Commonwealth should seize chance for reforms, Wagner says
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Solving Puerto Rico's $70 Billion Debt Problem

Puerto Rico, which is running out of cash and narrowly averted its first major default on Tuesday, should be able to repay investors, said Tom Wagner, co-founding partner of hedge fund Knighthead Capital Management.

The per-capita debt burden of the commonwealth, which owes about $70 billion, is lower than that of U.S. states, when adding in U.S. residents’ share of the national debt, said Wagner, whose fund owns securities issued by Puerto Rico’s electric company.