Four investment funds holding Puerto Rico Sales Tax Financing Corp. senior bonds sued the trustee, Bank of New York Mellon, alleging that the issuer is in default and that BNY Mellon has breached its duty to bondholders.

Whitebox Advisors LLC controls the four funds: Whitebox Multi-Strategy Partners, L.P.; Whitebox Asymmetric Partners, L.P.; Whitebox Institutional Partners, L.P.; and Pandora Select Partners, L.P. They filed their suit over the bonds, known by the Spanish acronym COFINA, in New York Supreme Court for New York City on Wednesday.

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