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
Puerto Rico Governor Hopeful About Turnaround Plan
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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.
Investors rebuffed the offer as Congress reached a bipartisan $1.1 trillion spending bill that would keep the government open through the end of September. Under the tentative deal, the commonwealth would receive $295 million to help fund its Medicaid program, which is set to run out of supplemental funding by Dec. 31.