Puerto Rico Infrastructure Financial Authority

It is unclear if the Oversight Board will accept the law and how much it differs from Board-endorsed legislation that failed last week in the legislature.

Judge Laura Taylor Swain contemplates dismissing the bankruptcy, which would leave bondholders in position to sue for full payment.

The Puerto Rico Bankruptcy Judge on Friday ordered a meeting for Monday between the Oversight Board, lawmakers, the governor and creditors to discuss possible alternatives.

The island's General Fund gained $1.476 billion of revenue.

While the Puerto Rico House passed it, the Senate set a Thursday vote to ensure passage.

The deal for new bonds will likely be passed but experts say the final Plan of Adjustment may not lead to a sustainable recovery for the island.

Lawmakers say they will support legislation backing the Plan of Adjustment, which has been a major hurdle for completion of the debt restructuring plan.

Judge Swain keeps the process on schedule to start the Confirmation Hearing on Nov. 8.

The board also offers to approve other spending in exchange for local government approval of new bonds and other measures for the Plan of Adjustment.

Bond insurer Ambac Assurance joined other creditors in saying without local government support, they may withdraw theirs for the Plan of Adjustment.

Puerto Rico House leadership wants a guarantee of no pension cuts and other incentives in a debt bill.

Swain said she would review the consistency of the proposed Plan of Adjustment with the certified fiscal plan in deciding whether to approve it.

The board wants the deadline for retail bondholders to vote on the Plan of Adjustment to remain Oct. 18.

The current bill is inconsistent with what the Oversight Board has said it is willing to accept.

Despite the recent two-week extension Peter Hein says the timeline is too tight and another week is needed.

The move could push the Plan of Adjustment, and debt restructuring, closer to the finish line, although the Senate president listed eight more concessions he wants.

While there is no formal deal between the board and the local government, the bill may ultimately serve as a comprehensive bargain.

The board sent mixed signals on a possibility of deal with legislature on pension cuts.

The local government is trying to apply pressure on the board to get its way on the Plan of Adjustment.

Judge Swain rejected the governor's request to stay the board's suit until November.