Assured Guaranty is suing Puerto Rico’s federal Oversight Board over its decision to push the Caribbean island’s electric utility into bankruptcy, the Royal Gazette reported. The Bermuda-based firm insures some of the bonds issued by PREPA, as the utility is known, and the bankruptcy comes after the rejection of a longstanding debt-restructuring agreement with creditors. It marks the end of nearly four years of negotiations between PREPA, hedge funds, mutual funds and bond-insurance companies, including Assured, to find an out-of-court solution to reduce the agency’s obligations and modernize its system. Read more.
For updated news and analysis of Puerto Rico's debt crisis, along with current docket filings in Puerto Rico's case, be sure to visit ABI's "Puerto Rico in Distress" webpage.
