Puerto Rico

They say a Plan B that does not involve local legislative approval must be negotiated.

At issue is about $400 million the board would like Puerto Rico's government to retain.

The Puerto Rico Fiscal Agency and Financial Advisory Authority has requested pre-qualified investment banks to provide ideas and opportunities for refunding for savings.

While the Puerto Rico Senate would not take up a House-approved budget amendment that would allocate money to repay bondholders, analysts expect the Oversight Board to approve the funding.

The measure authorizes spending $10.9 billion from past years’ revenues for paying various Plan of Adjustment entities, including nearly $8 billion to pay bondholders and bond insurers.

Their filings in court follow similar arguments they made against teachers' associations last week.

House fails to approve budget amendment allowing payment to bondholders.

The board said a stay would inflict serious harm on Puerto Rico by plunging it into “financial chaos,” send the bankruptcy process “back to square one,” and would “needlessly delay the commonwealth’s economic recovery.”

The unrest potentially has short- and long-term impacts on the local government and its finances, analysts say.

Judge Laura Taylor Swain's action allows LUMA Energy to continue to operate.

Attorneys say the first step is to get a court to stay enactment of the Plan of Adjustment, but that it is unlikely.

Jaresko's resignation comes the same week as more than 40 Puerto Rican groups called for the disbandment of the Oversight Board in a letter to President Joe Biden.

The teachers' groups will request a stay of plan implementation.

Local legislators may be opposed to the current PREPA bond deal.

More federal Medicaid funding and higher-than-expected economic growth will lead to more revenues, the board expects.

Swain's order affects $1.9 billion of PRIFA bonds and $384 million of CCDA bonds, for which insurers and bondholders will receive minimum recoveries of 14% and 29% of par, respectively.

The law concerning bankruptcy advisor disclosures comes after the SEC fined Oversight Board advisor McKinsey in November.

Participants note there is a long road to sustainable recovery for the island that is dependent on the local government keeping its spending in check.

After more than four years of intense negotiations between many stakeholders, the Oversight Board's Plan of Adjustment gets the OK from Judge Laura Taylor Swain, moving the commonwealth closer to emerging from bankruptcy.

To become law, the bill would have to pass the House of Representatives and Senate, gain the governor's signature, and avoid potential blocks by the Puerto Rico Oversight Board and lawsuits.