Photographer: Erika P. Rodriguez/Bloomberg

Hedge Funds Disclose Just How Many Puerto Rico Bonds They Own

  • Ad hoc group holds $3.3 billion of commonwealth debt
  • Puerto Rico owes $13 billion of general-obligation debt

A group of hedge funds that owns $3.3 billion of Puerto Rico bonds disclosed in court documents the amount that each of them holds.

The disclosure is related to the territory’s May 3 bankruptcy, which will allow Puerto Rico and its agencies to reduce the $74 billion of debt left after years of economic decline and borrowing to cover operating expenses. The group includes distressed-debt buyers and Franklin Mutual Advisers LLC.

The group claims that general-obligation bonds must be paid before other types of Puerto Rico debt because the island’s constitution gives those securities the highest claim to the government’s cash. The group wants Puerto Rico’s sales-tax revenue to help repay general-obligation debt. The island sold sales-tax bonds backed by that revenue stream.

The amounts that each firm holds, as of July 12, are as follows:

A portion of debt held by Aurelius, FCO Advisors, Monarch Alternative and Stone Lion is guaranteed repayment by bond insurers.

DOCUMENT: BBLS DD X1Q6NSNRJ4O2

DOCKET: BBLS DD X1Q6NR5KJN82

— With assistance by Steven Church

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