Photo: National Geographic
Reuters is reporting that Puerto Rico may be able to exit bankruptcy after a $24 billion debt deal involving bonds.
Puerto Rico filed for bankruptcy in May of 2017 after being more than $120 billion in debt. Under the new deal, creditors would receive $10.7 billion in new debt and the length of paying back creditors would be reduced to 20 years versus 30.
At issue still remains government pensions. The board wants to cut pensions 8.5% for those that earn more than $1,200 in benefits.
The governor doesn’t approve of the agreement because of the pension being slashed.
“My position during this process has been that if bondholders receive better treatment in a new deal, pensioners must also receive better treatment,” Vazquez said in a statement.
Have questions about filing for bankruptcy? Then contact Attorney Alex Hernandez for your free consultation. Saturday appointments are available.
Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years.
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