For bondholders sitting on Puerto Rican debt, Hurricane Maria may have come just when they needed it, just as a yearslong battle over the fate of the islands financial future was beginning to turn against them. Or, depending on how the politics shake out, they could see their entire bet go south.
Ahead of Maria, the federally appointed fiscal oversight board now in control of Puerto Ricos finances had developed a plan that would wipe out 79 percent of the islands annual debt payments, taking a massive chunk out of the payday hedge funds had been hoping to land from the island.
In the wake of the storm, that fight could go one of two ways: Advocates for Puerto Rico are making the case that the devastation means that 79 percent should b…
Read the full article at: https://theintercept.com/2017/10/04/puerto-rico-debt-forgiveness-hurricane-maria/