Puerto Rico Said to Seek Deeper Concessions in Utility Deal
- Agreement struck in December 2015 called for 15% losses
- Focus may be on monoline insurers to take deeper cuts
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Puerto Rico Governor Ricardo Rossello’s administration has indicated that it wants to renegotiate a deal struck more than a year ago to restructure about $9 billion of electric utility debt, an effort that could result in a showdown with insurers that guaranteed some of the bonds against default, people familiar with the matter said.
Rothschild & Co., which Rossello hired to oversee negotiations after he took office last month, has explored the possibility of persuading MBIA Inc., Assured Guaranty Ltd. and Syncora Guarantee Inc. to contribute more to the restructuring, according to people who spoke on the condition that they not be identified because the negotiations are ongoing.