Bond insurer Assured Guaranty sued Puerto Rico and its federally-appointed oversight board yesterday, saying their plan to resuscitate the storm-ravaged, bankrupt U.S. territory violates the U.S. Constitution by stripping creditors of property rights, Reuters reported. Assured, which insures $5 billion of bonds issued by Puerto Rico and its public agencies, wants a federal court in Puerto Rico to declare invalid a fiscal turnaround plan that sets future economic projections for Puerto Rico. The projections are meant to form the basis for debt restructuring talks between Puerto Rico and holders of $71.5 billion in debt the island cannot pay. Assured expressed frustration over the plan last week, telling the board in a letter the projections had been reached without creditor input.
