WASHINGTON, Feb. 22, 2017 /PRNewswire-USNewswire/ -- A group of COFINA bondholders – consisting of one individual investor and many hedge funds – issued a public statement today to announce their request to join litigation already pending in the U.S. District Court in Puerto Rico. Consistent with past practice, the COFINA bondholder group's public statement does everything it can to deflect from the merits and avoid scrutiny of the COFINA scam.
The litigation poses a simple question – was it illegal for the Commonwealth to assign many billions of its tax revenues to COFINA? We believe that assignment was illegal. The COFINA group disagrees. If the court agrees with us, the Commonwealth will be more than $50 billion better off.
Since we are confident in our position, we are content to allow the court to decide this important issue unless it can be satisfactorily settled. In contrast, the COFINA bondholder group first tried to stay the litigation, which the court recently refused to do.
Now the COFINA bondholder group has issued a public statement filled with fear-mongering and mischaracterization – everything but the merits of the question before the court. The COFINA group suggests that the political leaders of the Commonwealth should impose a $50 billion burden on all citizens of Puerto Rico for the exclusive benefit of investors of COFINA bonds – including the off-island hedge funds that have nearly all the COFINA bondholder group's holdings.
These tactics speak volumes. The COFINA bondholder group has bet on a scam, and they are mighty uncomfortable having to defend it.
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SOURCE General Obligation Bondholders of Puerto Rico