The Fiscal Oversight and Management Board overseeing Puerto Rico’s debt restructuring have reached a tentative agreement with bondholders that moves the U.S. territory closer to exiting bankruptcy, according to the Wallstreet Journal.
Giving the major public implications and concerns over the debt terms, very little information has been made transparent to the public since the Board went behind doors late last year. In fact, it would appear as if the Wall Street Journal has the exclusive information from the Fiscal Oversight Board as no other major news outlets both stateside and in the US Territory has reported in the matter.
According, to the WSJ this negotiation settles a dispute between holders of Puerto Rico general obligation bonds that were issued before 2012 and owners of general obligation bonds issued after the critical date which Puerto Rico’s financial problems became publicly disclosed. The Fiscal Oversight Board has argued that bonds issued after 2012 were made under questionable pretences and should not have the same validity of as those issued prior.
More in the news: Puerto Rico Bondholders Reach Tentative Deal With Oversight Board – WSJ