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Puerto Rico Says $911 Million in Payments Missed in Default

  • General obigation payment is biggest skipped by commonwealth
  • Hedge funds file motion to challenge debt moratorium law
A for sale sign is seen hanging from a balcony next to a Puerto Rican flag in Old San Juan.
Photographer: Joe Raedle/Getty Images
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Puerto Rico is skipping a record $911 million of bond payments due Friday in the culmination of a more than year-long effort to force creditors into restructuring what island and federal officials have characterized as a crushing debt burden.

Governor Alejandro Garcia Padilla said during a press conference in San Juan that the biggest missed payment is for $780 million of general-obligation bonds. On Thursday, he evoked a local moratorium provision after President Barack Obama signed a bill into law that sets a debt restructuring in motion and shelters the island from liability. The commonwealth had about $2 billion in bond payments due Friday.