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Judge approves massive Puerto Rico debt restructuring deal

Goldhedge

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Judge approves massive Puerto Rico debt restructuring deal

DANICA COTO
Associated Press
February 4, 2019


FILE - In this Sept. 20, 2018 file photo, people gather outside the White House in Washington, during a vigil commemorating the one-year anniversary of Hurricane Maria hitting Puerto Rico. A federal bankruptcy judge on Monday, Feb. 4, 2019 approved a major debt restructuring plan for Puerto Rico in the first deal of its kind for the U.S. territory since the government declared nearly three years ago that it was unable to pay its public debt. (AP Photo/Susan Walsh, File)


SAN JUAN, Puerto Rico (AP) — A federal bankruptcy judge approved a major debt restructuring plan for Puerto Rico on Monday in the first deal of its kind for the U.S. territory since the island's government declared nearly four years ago that it was unable to repay its public debt.

The agreement involves more than $17 billion worth of government bonds backed by a sales-and-use tax, with officials saying it will help the government save an average of $456 million a year in debt service. The deal allows Puerto Rico to cut its sales-tax-backed debt by 32 percent but requires the government to pay $32 billion in the next 40 years as part of the restructuring.

Senior bondholders, who hold nearly $8 billion, will be first to collect, receiving 93 percent of the value of the original bonds. Junior bondholders, many of whom are individual Puerto Rican investors and overall hold nearly $10 billion, will collect last and recover only 54 percent.
 

EO 11110

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nyc vipers win again. I guarantee they didn't buy those toxics for 93 cents on the dollar - but that's what they are getting. I think I remember the bonds trading at 60ish cents on the dollar. add 10x leverage and the vipers made 500 percentish. disgusting repeat of the mbs/clo bailouts by frbny in the crash of 08

"Senior bondholders, who hold nearly $8 billion, will be first to collect, receiving 93 percent of the value of the original bonds. Junior bondholders, many of whom are individual Puerto Rican investors and overall hold nearly $10 billion, will collect last and recover only 54 percent."
 

Usury

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To me it’s more disgusting that those bonds ever existed in the first place and that PR thinks default is just fine. I say let em crash...no bailout!
 

Ebie

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Are they still selling new bonds while defaulting on the other bonds?
At what interest rate?
 

Cigarlover

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So now the US can send them more money so they can pay their restructured debt. Socialism at its finest. They just haven't run out of our money yet.
I think I looked once and North carolina has a similar population. They were carrying like 3 billion in debt. Puerto Rico was carrying 75 billion. Does anyone work in PR?
 

chomper

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#9
Easy way to solve this problem:

- Declare independence and sovereignty from the US govco
- Dissolve the PR government structure
- Wash hands of everything
- Start growing coconuts and mangos again, and export them
- Have a good day
 

HistoryStudent

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#10
Gee. Let me get this straight, okay?

Perhaps that is why President Trump is in the White House to oversee
the thing he's an expert at - BANKRUPTCY OF THE USA.

That's what Jim Sinclair just said on that recent video...

Nah, it is just a coincidence, with the nation NOT being broke and all...
Healthy stock market, Great bond market, Comex okay, and the government working great...
All that gold in Fort Knox, Interest rates okay, everyone happy, no homelessness,
Everyone getting raises... what can possibly happen in paradise?

Buy a FINANCIAL bombshell buster...
 

Bottom Feeder

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Easy way to solve this problem:

- Declare independence and sovereignty from the US govco
- Dissolve the PR government structure
- Wash hands of everything
- Start growing coconuts and mangos again, and export them
- Have a good day
ten years later storm back in bomb the shit outta everything and hang the politicians (actually let their own peeps do it) steal all the gold out of their bank and declare them a democracy.

/rant