Puerto Rico Employees Retirement System

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."

The plan continues a cut to the pension system found in earlier versions.

New expectations for disaster funding, gross national product growth rates, and population may change projections of money for debt.

The board wants to recover more than $1 billion in payments and fees on bonds it deems illegal.

Democratic representatives hailed the decision, which averts an interruption of the effort to restructure the island's debt.

Board says it it will sue those who held at least $2.5 million of the challenged bonds from May 2013 to May 2017.

The board says it will file law suits seeking to claw back funds from bondholders before the end of Thursday, May 2.

Judge Swain's ruling complicates the Puerto Rico Oversight Board's effort to recover payments on $6 billion of bonds that the board deems to have been illegally sold.

They say that the Oversight Board has shown itself to be slow and obstructionist in attacking illegitimate bonds and prosecuting guilty parties.

The firms are saying they shouldn't have to participate in the disclosure, which could lead to a clawback of bond payments.

The proposed 2020 budget has $139 million for the payment of debt.