June 1, 2018 Comments (0) Blog, Current Investigations

Investor Alert – Update on Puerto Rico Bondholder Dispute

Puerto Rico Bonds

Puerto Rico GO Bondholders vs. Puerto Rico COFINA Bondholders

The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended Puerto Rico Bonds to investors.

Puerto Rico GO bondholders and Puerto Rico COFINA bondholders may have finally reached an agreement resolving the biggest dispute in Puerto Rico’s $70 million bankruptcy case.

The two top tier creditor groups have been fighting over who has first rights to the island’s sales-tax revenue for bond payments for over a year now.

According to the executive summary, a proposed settlement would provide approximately $10 billion of debt relief and would resolve substantial risks to the Commonwealth.

The two groups have reportedly agreed to set up a trust that would take in Puerto Rico’s 5.5 percent sales and use tax for 40 years and then pay out to the separate bondholder groups.

COFINA bondholders would receive 52.5 percent of the sales tax revenue, while general obligation bondholders would get 46.2 percent. The Bonistas del Patio, which represents island residents who own bonds, and the bond insurers Assured Guaranty, Ambac and MBIA are the other settling parties in the group. In total, the supporting parties hold more than $11 billion of Puerto Rico’s debt.

Recovery of Investment Losses in Puerto Rico Bonds

The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling Puerto Rico COFINA Bonds.

Broker dealers are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

If you suffered losses investing in Puerto Rico Bonds, the attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that recommended the investment to you.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in claims against their brokerage firm.

For a free consultation with one of the firm’s securities attorneys, please call (888) 637-5510.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.