Puerto Rico

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.

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.

The board says the Ad Hoc Group of PREPA bondholders wrongly focused on "confirmation" issues in their attack on the board's proposed disclosure.

Low income residents of Puerto Rico won't be charged the proposed monthly fees the Oversight Board said.

The Oversight Board and the other PREPA parties are attempting to create precedent that frontally attacks not only PREPA bondholders and their insurers but also municipal revenue bond finance and basic bankruptcy jurisprudence.

Complaints include assertions the plan is unconfirmable and that it fails to offer necessary information.

"This settlement offer allows you to settle for payment in the form of new bonds of approximately half your claims," the Puerto Rico Oversight Board said.

They also came in 14% higher than those of December 2021.

The Puerto Rico Oversight Board says PREPA electric demand will decline 50% by 2051.

Mediation sessions are expected to resume in the coming weeks.

The contract is for 10 years.

Revenue were better than projected despite the Treasury Department postponing deadlines for certain taxes.

Critics say there are problems with part of the team because of a conflict of interest and a lack of experience.

Bondholders say they have lost patience after six years of nonpayment.