Puerto Rico Insurers Seek Talks to Avert Next Major Bond Default
- CEOs of Assured Guaranty and Ambac want more discussions
- Puerto Rico owes $805 million on general obligations July 1
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Puerto Rico’s bond insurers are urging the commonwealth to negotiate with creditors as speculation increases that the island will default July 1 for the first time on its general-obligation debt.
While commonwealth officials, investors and bond-insurance companies have been negotiating for months on how to reduce Puerto Rico’s $70 billion of debt, specific talks over addressing next month’s general-obligation payment have yet to occur, Nader Tavakoli, president and chief executive officer at Ambac Financial Group Inc., said during a Debtwire conference Tuesday in Manhattan. Such discussions could allow Puerto Rico to avoid lawsuits, put off some of the payment, or restructure debt before next month’s deadline.