Government Development Bank for Puerto Rico

The appeals court judges seemed unmoved by the arguments.

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

The Oversight Board argued legal issues with bondholders, pensioners, credit unions, and others at Monday's Plan of Adjustment confirmation hearing.

Judge Swain also allowed Debt Recovery Authority bondholders efforts to protect their collateral to continue.

Bankruptcy Judge Swain conditionally approved the Disclosure Statement, moving the Plan of Adjustment closer to a vote, but questions remain on how new bonds for the deal will be resolved.

A federal judge has set a Feb. 10 deadline for the Oversight Board to file “an informative motion presenting a term sheet disclosing the material economic and structural features of an amended plan of adjustment.”

The local government's inertia and PROMESA's unwieldy structure, along with natural disasters and a global pandemic, have impeded Puerto Rico's recovery.

Swain insists that holders of 2012 and 2014 bonds, which have been challenged as illegal, be given litigation notice.

"What, me worry?" was the slogan of the muni market on Tuesday as participants forged ahead to price and buy bonds.

Bankruptcy mediator Barbara Houser recommends litigation over $22 billion in bonds should resume in January and February.