WASHINGTON, April 5, 2016 /PRNewswire/ -- In response to Puerto Rico Governor Alejandro Garcia Padilla's illegal moratorium on all Commonwealth debt payments, which creates a constitutional crisis on the island by including debts backed by the "full faith and credit" of the Puerto Rican Government, Main Street Bondholders released the following statement:
"This unilateral moratorium is a direct violation of our Constitution and undermines the rule of law that once governed Puerto Rico," said Main Street Bondholders Member Dr. Elias Gutierrez. "Governor Garcia Padilla has made clear that he will pursue any means necessary to follow his agenda, regardless of legality, and in doing so has all but destroyed the credibility of the Commonwealth."
"The moratorium will crush any negotiations that may have been ongoing in good faith between Puerto Rico and bondholders," said Main Street Bondholders Member Teresa Garcia. "This bill makes finding a consensual solution essentially impossible, and wrongly directs a crisis of the governor's own making at regular bondholders all over Puerto Rico."
The moratorium legislation, which was passed by the Puerto Rican Senate early this morning, awaits a final vote in the Puerto Rico House of Representatives at 11:00 am ET. If passed, the unconstitutional moratorium will likely doom the Puerto Rican Government and its bondholders to years of protracted litigation.
Main Street Bondholders Coalition is a project of the 60 Plus Association, and is comprised of small bondholders from across America who are committed to a policy process that returns Puerto Rico to sound financial management, respect for the rule of law, and the protection of their retirement savings.
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SOURCE Main Street Bondholders