Puerto Rico

With 16 days left to the U.S. House of Representatives' session, a bill to raise the rate languishes in committee.

Fuel line attorney questions validity of the party as an impaired class.

They say the HTA employees group have failed to show any of the four conditions needed for a court to order a stay.

The PFC bondholders are to get cash and some new appropriation-backed bonds.

The bondholders say they are owed $8.3 billion of principal and billions more of unpaid interest.

The workers say federal law bars the impairment of their wages.

There is chatter about a restructuring of UPR bonds, which have been paid throughout the territory's bankruptcy; the university's accreditation is a factor.

They say the Oversight Board's argument restricting their claims just to money in the sinking fund is wrong.

FAFAA and Gov. Pedro Pierluisi retain some influence over the direction of an adversary proceeding in the PREPA bankruptcy and on the ultimate PREPA bond deal.

The plan reduces HTA's $6.4 billion of total claims by more than 80% and saves Puerto Rico more than $3 billion in debt service payments, the Oversight Board said.

Swain said the bondholders lien on revenues and the recourse nature of the bonds needs to be determined. The judge would likely order a plan confirmation hearing take place by June 2023. 

While the parties generally support the start of litigation, they are arguing about everything else.

A multi-option plan of adjustment would be filed within 60 days.

The Puerto Rico Oversight Board is seeking the return of fees connected with Puerto Rico bonds and swaps.

Swain postponed Wednesday's bankruptcy hearing in the case and extended the comment deadline.

Bondholders want a quick resolution and they say the Oversight Board's approach would take two years.

Judge Swain on Wednesday will consider the Oversight Board's proposal to commence litigation on creditor claims.

Puerto Rico's Fiscal Agency and Financial Advisory Authority said it "is available to assist the municipalities, as financial advisor and fiscal agent of the Government, on any restructuring that it deems necessary."

The statement could be interpreted as also suggesting a restructuring of $242 million in bonds.

Judge Swain grants the mediation team's request for an extension until Sept. 16 and possibly longer.