PUERTO RICO UPDATE
Assured Guaranty Responds to Puerto Rico Oversight Board’s Approval of PREPA's Title III Bankruptcy Filing
Wednesday, July 5, 2017 8:57 am EDT
Dateline City: HAMILTON, Bermuda
HAMILTON, Bermuda--(BUSINESS WIRE)--Assured Guaranty Ltd. (NYSE:AGO) (together with its subsidiaries, Assured Guaranty) released the following comments regarding the approval of the Puerto Rico Electric Power Authority’s (PREPA) Title III bankruptcy filing by the Financial Oversight and Management Board for Puerto Rico:
Dominic Frederico, President and Chief Executive Officer of Assured Guaranty said, "As we indicated last week, the Oversight Board has once again chosen to disregard the rule of law and a fundamental purpose of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) – implementing consensual restructurings that solve fiscal problems and allow Puerto Rico to regain access to the capital markets. The Restructuring Support Agreement (RSA) would have provided: significant liquidity and debt relief, lower rates for ratepayers, funds for capital improvements and access to lower cost of capital. By rejecting the RSA and approving a Title III bankruptcy, the Oversight Board has shown that it has no intention of seeking consensual resolutions and is instead committed to reneging on as many of Puerto Rico's obligations to stakeholders as possible. This will lead to years of expensive and time-consuming litigation. We continue to believe the pre-existing PREPA RSA, which was approved by two Puerto Rico governors, the Puerto Rico Legislature, the Puerto Rico Energy Commission and the PREPA Board, represents the best path forward for PREPA, the Commonwealth and the residents of Puerto Rico. We believe that it is in the best interests of all parties involved that the Trump Administration and US Congress step in and restore the rule of law to avoid years of litigation and many wasted expenses for Puerto Rico.
Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from Assured Guaranty's inability to execute its strategies, including its loss mitigation and risk remediation strategies, and other risks and uncertainties that have not been identified at this time, management's response to these factors, and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of July 5, 2017. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
Information obtained from sources deemed reliable; GMS does not purport Review/Preview contains all available information.