Puerto Rico May Need to Skip Bond Payments for Five Years
- Lead lawyer tells federal court island may need a moratorium
- Prices of most actively traded bonds fall to a record low
Puerto Rico's Governor Calls on Trump for Help
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Puerto Rico is considering suspending debt-service payments for five years, a lead lawyer for the territory’s federal oversight board said, in the first indication of how the devastation caused by Hurricane Maria will affect the restructuring of the island’s debt.
A moratorium may be included as part of Puerto Rico’s plan to reduce what it owes through bankruptcy, Martin Bienenstock, a partner at Proskauer Rose LLP who represents the panel, said at a court hearing Wednesday in Manhattan. It wasn’t immediately clear whether such a step would apply to all of government’s $74 billion of debt.