Puerto Rican legislators gave approval Thursday to a final agreement for restructuring bonds from the Sales Tax Financing Corp., known as COFINA, Pensions & Investments reported. The COFINA restructuring agreement was filed Oct. 19 in the court overseeing Puerto Rico's bankruptcy, under Title III of the Puerto Rico Oversight, Management and Economic Stability Act. The just-passed legislation supports the plan, which restructures all $17.6 billion of COFINA debt and represents 24 percent of Puerto Rico's total bonded debt. The COFINA agreement, supported by bondholders and bond insurance companies, is the first debt adjustment plan headed for court approval. It still has to be approved by U.S. District Court Judge Laura Taylor Swain before it goes into effect in January.
