Puerto Rico

Puerto Rico Gov. Alejandro García Padilla, stung by the defeat of his plan to increase revenue with a value added tax, ridiculed the idea of defaulting on the island’s debt. At the same time, he called for talks with creditors.

Pension obligation bonds are land mines municipal issuers should avoid, according to Janney Capital Markets.

The Puerto Rico Electric Power Authority, the public corporation with more than $9 billion of debt that is working with bondholders on a plan to revamp its operations, said it hired Goldman Sachs as a "potential underwriter" to work with its advisors on a "potential financing transaction."

After Puerto Rico’s House of Representatives voted down a proposed tax reform that would have increased revenues, some legislators called for alternate approaches to balancing the government’s books.

The bondholders of the Puerto Rico Electric Power Authority announced they had agreed to extend their forbearance for 35 additional days.

Puerto Rico Gov. García Padilla expects to deliver an annual state of the commonwealth speech this week without offering a budget.

Standard & Poor’s downgraded the Puerto Rico Electric Power Authority to CCC-minus from CCC, saying that a default seemed inevitable within six months.

The Puerto Rico Electric Power Authority said that the bondholders' plan to revamp its business and avoid default was overly optimistic on costs.

Puerto Rico’s tax overhaul plan took shape this week as the commonwealth’s financial authority warned of a likely government shutdown within three months due to a lack of liquidity and ability to sell bonds.

Puerto Rico banking firm OFG Bancorp said its subsidiary Oriental Bank was placing a $200 million line of credit with the Puerto Rico Electric Power Authority on non-accrual status.

The creditors of the Puerto Rico Electric Power Authority extended their forbearance to the authority by 15 days on Wednesday.

With the forbearance agreement between Puerto Rico Electric Power Authority and its bondholders scheduled to elapse in hours, the two sides were arguing Wednesday about how the agreement should be continued.

Puerto Rico Electric Power Authority chief restructuring officer Lisa Donahue said she has not made a decision yet about whether she will seek a restructuring of the authority’s debt.

Puerto Rico Electric Power Authority bondholders have offered to extend their forbearance agreement with PREPA for another 30 days, according to a public relations firm for PREPA forbearing bondholders.

Puerto Rico Electric Power Authority chief restructuring officer Lisa Donahue will testify before a Puerto Rico Senate committee Tuesday morning.

The Puerto Rico Treasury’s revenues came in 3.4% below projections.

The Puerto Rico Electric Power Authority's chief restructuring officer, Lisa Donahue, is optimistic that an agreement can be reached with its creditors.

An overhaul of Puerto Rico's taxes different from the governor's proposal is moving towards adoption, observers say.

Muni analysts are doubtful that a forbearing bondholder proposal to the Puerto Rico Electric Power Authority will solve all of its financial problems.

The Puerto Rico Electric Power Authority raised concerns Wednesday night about the forbearing bondholders plans' assumptions.