Puerto Rico HTA restructuring deadline extended

Puerto Rico Highways and Transportation Authority bankruptcy Judge Laura Taylor Swain extended the deadline for an HTA plan of adjustment to 5:00 p.m. Atlantic Standard Time Tuesday.

The deadline had been 5:00 p.m. AST, Aug. 31.

Swain has directed the board to include changes to the plan of adjustment negotiated between Assured Guaranty and two investment funds. She also said the changes should reflect the resolution of two other conflicts that were resolved a few weeks ago.

Bloomberg News

Swain has also directed the changes for these disputes' resolution be made to the proposed findings of fact and conclusions of law, the proposed order and judgment confirming the plan, and other relevant plan material.

According to the terms of the HTA plan of adjustment, holders of $4.3 billion of HTA bonds would receive $1.2 billion of new bonds with 5% coupons and $389 million of cash. The generosity of the deal depends on what type of HTA bond is held.

Holders of HTA bonds may also receive recoveries through clawback contingent vehicle instruments on account of HTA claims against the commonwealth.

The plan settles about $2.2 billion of outstanding loans held by the Debt Recovery Authority, the successor of the Government Development Bank for Puerto Rico.

About $1.2 billion of the original par value is uninsured and the rest is insured by Assured Guaranty, National Public Finance Guarantee, Financial Guaranty Insurance Corp., and Ambac Assurance.