NEW YORK & SAN JUAN, Puerto Rico--(BUSINESS WIRE)--The COFINA Senior Bondholders Coalition (the “Coalition”), which collectively represents the largest group of organized holders of bonds issued by the Puerto Rico Sales Tax Financing Corporation (“COFINA”), released the following statement today regarding the terms agreed upon by a majority of COFINA stakeholders, the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), and the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”):
“This agreement between the Oversight Board and a substantial number of COFINA senior and subordinate creditors marks a major milestone for Puerto Rico on its road to recovery. The terms lay the groundwork for future capital markets access, equitable recoveries and the resumption of restructured cash interest for all bondholders, including a large cross-section of local retirees and individuals. Importantly, the deal also reduces Puerto Rico’s debt by approximately $7 billion, preserves access to low-cost securitizations and increases the Commonwealth’s FY2019 sales tax revenue by more than $360 million.
“Reaching an agreement that is supported by the Oversight Board, the Government of Puerto Rico and other major stakeholders also validates what has been a multi-year commitment of considerable resources and time by all parties. In addition to consistently advocating for consensual restructuring agreements, our group actively supported the passage of the Puerto Rico Oversight, Management, and Economic Stability Act and helped develop the dispute resolution protocol for COFINA’s Title III case. We now look forward to working with all parties to finalize a Plan of Adjustment that can be confirmed by year’s end.”
About the Coalition
Formed in 2015, the COFINA Senior Bondholders Coalition is a group of creditors based throughout the United States. COFINA was the original "rescue bond" established in 2007 following the 2006 passage of bi-partisan legislation by the Puerto Rico Legislative Assembly. At last count made available by the Government of Puerto Rico, COFINA bonds were the most widely held bond amongst on-island individuals and retirees.
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