Associated Press: Judge Opens Hearing on Major Puerto Rico Debt Restructuring

January 16, 2019

On January 16, a court hearing opened regarding the treatment of Puerto Rico’s over US$17 billion debt backed by sales-tax bonds: nearly a third of Puerto Rico’s overall bond debt.

The deal, if approved, will constitute forty years of payment for Puerto Rico’s government. Its attorney (O’Melveny partner) Peter Friedman, explained that the deal would keep money in the government’s hands, allowing it to continue to provide essential services.

“Bondholders will not give more money if this deal is rejected,” he said. “What we can’t afford is losing and getting nothing.”

This wire story was published by The New York Times and The Washington Post, among others.