Speaking before a House panel in Washington, Ana Matosantos, a member of the federal board tasked with helping Puerto Rico end its fiscal crisis, said the panel would approve revisions to the 15-month-old deal if the governor presented it to them.
That plan suggested that bondholders face steep losses because it leaves enough cash to cover less than a quarter of the debt payments due from 2018 to 2026, even after the government moves to cut spending and increase revenue.
Among other things, the governor’s proposal sought to eliminate the need for insurers to provide a backstop for the new bonds, which the companies did in return for avoiding losses on debt they guaranteed.
are opposed to revising the deal, which will lapse on March 31 unless it’s extended.
In addition to next week’s deadline in the utility accord, Rossello is also struggling to reach an out of court settlement with all of the island’s creditors before May 1, when a legal stay that has shielded the island from most lawsuits lapses.