Board reaches tentative deal to lower Puerto Rico debt
SAN JUAN, Puerto Rico (AP) — A federal control board that oversees Puerto Rico’s finances announced Wednesday that it has reached an agreement in principal with creditors to reduce a portion of the U.S. territory’s more than $70 billion public debt load.
The board said the tentative deal followed a mediation process with creditors holding some $7 billion worth of general obligation and Public Building Authority bonds issued by the U.S. territory.
“What we achieved at this point is a realistic proposal that will open a path to recovery from bankruptcy,” said board chairman David Skeel.
As a result, the board asked a federal judge overseeing Puerto Rico’s bankruptcy-like process for an extension to file an amended plan of adjustment.
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