Puerto Rico Bondholder Bankruptcy Update
Commonwealth reaches agreement with Puerto Rico Bondholders this week.
According to reports this week, Puerto Rico’s federally appointed oversight board has struck a deal with bondholders of around $35 billion, close to 50% of the Commonwealth’s bankruptcy debt. Once approved by the bankruptcy Judge, the package will cut Puerto Rico’s outstanding bond debt from $35 billion to close to $11 billion.
The new plan will reportedly reduce the repayment timeline allowing the Commonwealth to retain the last ten years of cash flow totaling nearly $5 billion.
Both sides seem happy with the new plan, citing lower debt payments, and hopefully allowing for the Commonwealth to exit bankruptcy after an arduous 3 years.
According to the new plan, approximately $13 billion in outstanding general obligation or “GO” bonds issued pre-2012 would receive between 70.8 and 74.8 cents on the dollar, while the 2012 and 2014 GO bonds would receive 69.8 cents on the dollar and 65.4 cents on the dollar, respectively. The oversight board reportedly says that holders of $8 billion of bonds support the agreement, including Puerto Rican credit unions and traditional municipal investors.
Recovery of Investment Losses in Puerto Rico Bonds
The White Law Group continues its investigation into the liability that brokerage firms may have for improperly selling Puerto Rico Bonds to investors.
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.
For a free consultation with one of the firm’s securities attorneys, please call (888) 637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.