With Puerto Rico in Ruins, Bondholders Offer Cash for Gains
- Creditors reprise once spurned deal with 15 percent haircuts
- Group says $1 billion loan would help secure federal funds
Knighthead Hopes for Win-Win With Puerto Rico Offer
This article is for subscribers only.
In late June, Puerto Rico’s federal overseers rejected a plan that would have let big investors recover 85 cents on the dollar from bonds backed by the island’s distressed electric company, wagering a better deal for the impoverished U.S. territory could be won in bankruptcy.
The Puerto Rico Electric Power Authority has since been devastated by Hurricane Maria, which caused billions of dollars of damage and left virtually the entire island still without power.