WASHINGTON, June 21, 2016 /PRNewswire-USNewswire/ -- Certain General Obligation (GO) Bondholders of Puerto Rico have made a new proposal to Commonwealth officials for the restructuring of Puerto Rico's GO bonds. Under this new proposal, existing GO bonds (approximately $18 billion face amount) would be exchanged for new GO bonds at 89% of the existing face amount, and the Commonwealth's debt service would be reduced by $2.9 billion over the first five years.
Andrew Rosenberg of Paul, Weiss, Rifkind, Wharton and Garrison LLP, an advisor to the GO bondholders that made this proposal, issued the following statement:
"We believe there is significant bipartisan support in Puerto Rico for this proposal, which gives 'breathing room' to Commonwealth leaders by deferring principal payments and reducing contractual interest rates until July of 2022. This proposal shows a clear and continued willingness on the part of GO bondholders to negotiate with the Commonwealth, and avoid an unnecessary July 1 default on General Obligation debt."
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SOURCE General Obligation Bondholders of Puerto Rico