WASHINGTON, April 5, 2016 /PRNewswire/ -- Numerous investors (including certain mutual funds) holding $5bn in Puerto Rico's General Obligation bonds have agreed upon the terms of a joint restructuring proposal. It is expected that additional GO bondholders will join in this proposal in the very near future. Their joint restructuring proposal has now been released by the GO Bondholder group.
In addition to releasing the GO Bondholder term sheet, Andrew Rosenberg of Paul, Weiss, Rifkind, Wharton and Garrison LLP, an advisor to the Ad Hoc group of Puerto Rico's General Obligation bondholders, issued the following statement:
"We believe this proposal has significant local bi-partisan support in the legislature, which should be encouraging to the Government of Puerto Rico. While we would like to negotiate with the Puerto Rican Government in private and in good faith, the debt moratorium it has proposed that is before the Puerto Rican legislature has prompted this public release. We welcome engagement with important stakeholders throughout Puerto Rico, including the legislature and other leaders. We also welcome engagement with other GO bondholders.
"This offer should be attractive to the Commonwealth as it defers nearly $2 billion in principal over the next five years, and provides new money. Most importantly, this consensual process avoids a July 1 default, which would irreparably harm Puerto Rico's economy, hurt millions of American citizens who live on the island, and impair Puerto Rico's access to markets and its ability to finance essential services."
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SOURCE Ad Hoc Group of Puerto Rico's General Obligation Bondholders