Puerto Rico Employees Retirement System

Judge Swain has ordered an end to the stay on open litigation of pension bond issues.

UBS, the underwriter facing more than $800 million in lawsuits over the pension system bonds, argued the proposed schedule won't give it enough input.

Lack of legislative cooperation wouldn't be a problem until after court-approval of a plan of a adjustment, observers said.

The board also said the local government's $18 billion in the bank doesn't give it additional money to pay bondholders.

Bondholders' hopes of getting more than 13 cents on the dollar depend on rulings in various legal proceedings.

The Supreme Court let a lower court decision stand that may mean bondholders will get 100 cents on the dollar instead of 13 cents on $3.2 billion of bonds.

Gov. Wanda Vázquez García's support for pension cuts that had been opposed by her predecessor is seen as "a strong positive" for the debt restructuring.

The Puerto Rico Oversight Board filed a proposed plan of adjustment Friday that would reduce the commonwealth’s debt obligations by 60% and establish a roadmap to exit bankruptcy.

With a meeting on the restructuring set, bondholders were girding for battle over the board's plan to nullify portions of the debt.

Amending the law that established an oversight board for restructuring Puerto Rico’s debt looks like a tall order.

Lawyers say relations between the governor and the Oversight Board have improved with the new governor.

The mediation, initiated six weeks ago to resolve disputes over almost $25 billion of bonds, has yet to address the core issue of legality of some of the debt, according to a bondholder familiar with the process.

Almost $25 billion of bonds would be affected, as Judge Laura Taylor Swain seeks to avert "chaos" of claims by bondholders.

Without a successful appeal, Employees Retirement System bondholders won't get their bond payments during the bankruptcy.

They say a ruling in the Aurelius case reinforces their contention that the Puerto Rico Oversight Board is a federal body.

The Oversight Board called the deal to reduce cuts to retirees a "crucial step" toward restructuring $25 billion in bonds and loans.

A surplus this coming fiscal year will be used in following years for debt and pension payments, Executive Director Natalie Jaresko said.

U.S. Justice Department responds to hedge funds seeking reimbursement for Oversight Board impairments to bonds.

Justifying the latest bid to recover funds related to illegally issued debt, the board says the legislature failed to authorize the pension system bonds.

The delay of $220 million of pension savings is the latest "upsetting piece of news for bondholders."