Puerto Rico

Holders of COFINA subordinate bonds are seeking compensation from the U.S. government, claiming their property was taken without just compensation.

The ruling could set a precedent for the board's control over local government policies affecting the economy.

Judge Swain will approve the disclosure statement and sent the parties back to mediation.

The bond trustee has said treating bondholders differently violates the bond's trust agreement and makes the plan of adjustment unconfirmable.

The federal government has set aside $12 billion to help rebuild Puerto Rico's grid. If used effectively to rebuild a greener and more resilient grid, this federal lifeline can be a substantial downpayment toward affordable, reliable, cleaner energy for Puerto Ricans.

While the FAFAA backed the board's discovery timeline, bondholders argue the board is trying to "run out the clock."

It says the plan of adjustment can treat bonds of National Public Finance Guarantee differently and let National vote in a different class.

The proposed plan's superior treatment of National Public Finance Guarantee-insured bonds is discriminatory and thus illegal, they allege.

The economy was boosted by COVID and hurricane relief money, one economist says.

"The board's arguments are bad for the future of infrastructure financing in the United States," Oversight Board member Justin Peterson said.