Nine of Puerto Ricos creditors today joined forces to sue the islands Government Development Bank to prevent it from making payments to creditors before agreeing on a debt restructuring mechanism for the banks bonds.
Catastrophic losses to GDB creditors and the potential for serious harm to Puerto Rico as a whole can only be averted by a restructuring of GDB, the creditors wrote in a complaint filed today in the U.S. District Court of Puerto Rico. Accordingly, the Court should enjoin GDB, until further order of the Court, from making payments to its creditors or making any transfers of its assets for less than fair consideration, with exceptions for matters related to public safety or to pay bare minimum expenses such as rent, utili…
Read the full article at: https://morningconsult.com/alert/puerto-rico-bondholders-sue-islands-government-development-bank/