Puerto Rico Strikes Debt Deal With Aurelius and Autonomy
- Tentative pact offers 65.4 cents on 2014 general obligations
- Debt plan is a crucial step in Puerto Rico’s bankruptcy
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Aurelius Capital Management, Autonomy Capital and other investors who own $8 billion of Puerto Rico bonds struck a tentative pact with the island to reduce the nearly $18 billion of debt it owes, a major step in the commonwealth’s record bankruptcy.
The potential deal with the commonwealth’s financial oversight board brings together rival bondholder groups that had been divided in the past year over whether debt Puerto Rico sold in 2012 and 2014 is invalid. Aurelius and Autonomy, which hold securities sold in those years, joined the tentative agreement, which other bondholders signed in June, according to a securities filing.