Puerto Rico Bondholders Reject Island's Restructuring Offer

  • GOs would receive as much as 77 cents on the dollar in plan
  • Sales-tax bonds would get as much as 58 cents on the dollar

People walk on a street in Old San Juan, Puerto Rico.

Photographer: Christopher Gregory/Bloomberg
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Puerto Rico bondholders rejected Governor Ricardo Rossello’s debt-restructuring proposal days before a May 1 deadline to craft a deal or face a potential wave of creditor lawsuits.

The Caribbean island is offering holders of its general-obligation bonds as much as 77 cents on the dollar while proposing as much as 58 cents on the dollar for its sales-tax debt, according to the commonwealth’s , dated April 24 and posted at midnight Saturday on the Municipal Securities Rulemaking Board’s website, called EMMA.