WASHINGTON, April 11, 2016 /PRNewswire-USNewswire/ -- The Ad Hoc Group of Puerto Rico's General Obligation Bondholders and aligned mutual funds have reached a framework agreement with Assured Guaranty on insurer-specific modifications under which Assured Guaranty supports the creditor-led restructuring proposal for Puerto Rico General Obligation Bonds and would agree to the deferral of principal repayment on terms economically consistent with the previously released term sheet.
The restructuring proposal now has support of investors and insurers holding or controlling nearly $6.5 billion of Puerto Rico GO bonds. Other than the insurer-specific modifications, the Ad Hoc Group of GO Bondholders term sheet is the same in that it still provides for nearly $2 billion in principal deferment and new liquidity. Assured Guaranty will not invest in the new money component, but that will not affect the ability to raise such new money component.
Andrew Rosenberg of Paul, Weiss, Rifkind, Wharton and Garrison LLP, an advisor to the Ad Hoc Group of Puerto Rico's General Obligation Bondholders, said, "We are pleased to have growing support for the joint restructuring proposal. As the term sheet shows, the group agrees to defer principal repayment in order to give the Commonwealth sufficient time to deal with its current financial situation. We welcome the government of Puerto Rico's response to these terms."
To view the modified terms of the creditor-led GO restructuring proposal, click here. For media inquiries, please contact Miriam Warren at email@example.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/insurance-company-joins-in-supporting-proposal-to-restructure-puerto-rico-go-bonds-300249436.html
SOURCE Ad Hoc Group of Puerto Rico's General Obligation Bondholders