Puerto Rico

At the recent AFGI Puerto Rico Bankruptcy Risk Summit, Matt Fabian, partner and lead analyst at Municipal Market Analytics, noted that investors "would like to have more distinguishing between credits, but market realities limit their ability to do so."

Adam Bergonzi, Chief Risk Officer of National Public Finance Guarantee, said at the recent AFGI Puerto Rico Bankruptcy Risk Summit that the event was created as a rebuttal to an "oft-heard sentiment" that the commonwealth's bankruptcy was an anomaly.

Critics pointed to the agreement's failure to lower operating costs and its "very favorable" treatment of Assured Guaranty.

The restructuring is expected to save PREPA and Puerto Rico residents about $3 billion in debt service payments over the next 10 years.

The board wants to recover more than $1 billion in payments and fees on bonds it deems illegal.

The governor accused the Oversight Board of having “overstepped its boundaries, making it an even more undemocratic entity.”

The suits against non-bond creditors are a step in an effort to claw bank money that will extend to bondholders.

Democratic representatives hailed the decision, which averts an interruption of the effort to restructure the island's debt.

Board says it it will sue those who held at least $2.5 million of the challenged bonds from May 2013 to May 2017.

The board says it will file law suits seeking to claw back funds from bondholders before the end of Thursday, May 2.