Puerto Rico

Financial Guaranty Insurance Co. filed a suit against Puerto Rico Gov. Alejandro García Padilla and members of his government, the latest challenge over their diversion of revenues from Puerto Rico authority bonds.

Puerto Rico Gov. Alejandro García Padilla implied that if the U.S. government took control of Puerto Rico's government, the U.S. government would be responsible for paying the island's debt.

A House committee panel hearing next week on the need for a federal financial oversight authority in Puerto Rico could pave the way for a legislative package to address the territory's problems by the end of March, according to congressional aides and lobbyists.

The Puerto Rico Senate announced Tuesday that it would hold hearings on the cause of the delay on audited fiscal year 2014 financial statements for the commonwealth.

Only Congress can take the necessary steps to fully resolve Puerto Rico's debt crisis, Treasury Secretary Jack Lew said in a letter to congressional leadership on Friday.

Puerto Rico general obligation bondholders are complaining that Puerto Rico has repeatedly cancelled negotiating sessions.

The Puerto Rico Electric Power Authority will run out of money in the first half of 2016 if it cannot get creditors to agree to a financial restructuring plan, PREPA chief restructuring officer Lisa Donahue said at a House panel hearing on Tuesday.

Assured Guaranty Ltd. and Ambac Financial Group Inc. filed a lawsuit challenging the constitutionality of Puerto Rico's revenue clawback strategy, fanning concern that a long, messy process lies ahead as the commonwealth seeks to restructure about $70 billion of public bond debt.

Insurance companies that guarantee Puerto Rico municipal debt filed a lawsuit challenging the constitutionality of the commonwealth's decision to divert revenue designated for some bonds to pay other creditors.

Lisa Donahue, the chief restructuring officer for the heavily indebted Puerto Rico Electric Power Authority, will be one of four panelists testifying at a House Natural Resources Committee panel hearing on Jan. 12 about the commonwealth’s energy problems.

A United States government argument in a criminal case being heard by the U.S. Supreme Court may backfire, leaving the U.S. responsible for paying Puerto Rico’s debt, a prominent Puerto Rico Senator said.

Ambac Assurance Corp. paid out $10.3 million to cover an insured portion of the $36 million that the Puerto Rico Infrastructure Finance Authority defaulted on Monday.

Two House Natural Resources Committee panels will hold hearings on Puerto Rico this month to discuss the possibility of energy reform and federal oversight for the ailing commonwealth, according to a committee spokesperson.

Bondholders are expected to weigh litigation against intensified negotiations with Puerto Rico this month, after the commonwealth missed $37 million of debt payments.

Standard & Poor's Ratings Services said it has lowered its rating on the Puerto Rico Infrastructure Financing Authority bonds secured by federal rum excise taxes to D from CC, following the authority's default on scheduled interest payments.

Puerto Rico’s financial crisis grew deeper Monday when it skipped $37.3 million in debt service payments.

Puerto Rico Gov. Alejandro García Padilla announced on Wednesday that the commonwealth will default on $37.3 million out of nearly $1 billion of debt payments due on Jan. 4, a “mild” default, according to one analyst, and one that could threaten the governor’s plans congressional help.

Puerto Rico's economic activity index showed that the island's economy took a step backward in November.

Puerto Rico's governor lashed out at a federal government court brief that the governor said undermined the commonwealth's self-governing status.

The Puerto Rico Electric Power Authority’s two biggest bond insurers scored a victory in the authority’s Christmas Eve debt restructuring deal.