Seema Balwada, CFA
Federal Oversight Board Told to Negotiate With Bondholders
The U.S. House Committee on Natural Resources, which oversees Puerto Rico and aided in the creation of the law “PROMESA”, is telling the federally appointed Oversight Board to get deals done with bondholders. Rob Bishop, Republican Chairman of the House Committee stated in the attached letter to the Board; “I remain frustrated with the Oversight Board’s inability and unwillingness to reach consensual restructuring agreements with the holders of Puerto Rico debt”. Bishop Also stated that the Board must “Respect the relative lawful priorities or lawful liens” of bondholders. “PROMESA’s emphasis on good faith efforts reflects Congress desire for the debt restructuring process to be efficient and geared toward achieving a return to capital market access for Puerto Rico, without undermining the respect for the rule of law that is fundamental to efficient capital raising for municipalities across the United States.”
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