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Puerto Rico Says Talks Cease on Revised Debt Exchange Offers

  • Island offered 83.5 percent recovery on general obligations
  • Bondholder groups offered counterproposals on exchange rates
Updated on

Puerto Rico said confidential talks with some bondholders ended without any agreements to reduce its debt as the island edges closer toward what may be its biggest default yet.

The disclosure from the commonwealth came 10 days before $2 billion of interest and principal is due on a variety of securities, which Governor Alejandro Garcia Padilla has said the island can’t pay in full. The focus now turns to the U.S. Senate, which may take up a bill next week to establish an oversight board that would restructure Puerto Rico’s $70 billion in debt.