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U.S. judge limits bondholders' claim on Puerto Rico pension system assets
Source: Reuters
BUSINESS NEWS JUNE 27, 2019 / 6:48 PM / UPDATED AN HOUR AGO
U.S. judge limits bondholders' claim on Puerto Rico pension system assets
(Reuters) - A U.S. District Court judge on Thursday ruled that bondholders’ claim on the assets of Puerto Rico’s public employee pension system ended when the system filed for bankruptcy in May 2017.
The ruling is a setback for owners of nearly $3 billion of bonds sold by the system after a U.S. Appeals Court in January determined they had a legally enforceable claim as of December 2015 on assets pledged by the pension fund to pay off the debt.
But Judge Laura Taylor Swain decided the claim on employer contributions to the Employees Retirement System did not extend into bankruptcy.
The judge is hearing cases involving the U.S. Commonwealth’s attempt to restructure about $120 billion of debt and pension obligations.
-snip-
U.S. judge limits bondholders' claim on Puerto Rico pension system assets
(Reuters) - A U.S. District Court judge on Thursday ruled that bondholders’ claim on the assets of Puerto Rico’s public employee pension system ended when the system filed for bankruptcy in May 2017.
The ruling is a setback for owners of nearly $3 billion of bonds sold by the system after a U.S. Appeals Court in January determined they had a legally enforceable claim as of December 2015 on assets pledged by the pension fund to pay off the debt.
But Judge Laura Taylor Swain decided the claim on employer contributions to the Employees Retirement System did not extend into bankruptcy.
The judge is hearing cases involving the U.S. Commonwealth’s attempt to restructure about $120 billion of debt and pension obligations.
-snip-
Read more: https://www.reuters.com/article/us-usa-puertorico/u-s-judge-limits-bondholders-claim-on-puerto-rico-pension-system-assets-idUSKCN1TS3BE