The Executive Director of the Fiscal Control Board (JCF), Natalie Jaresko announced on Tuesday, which has presented the 6th Amended Government Adjustment Plan reflecting new agreements with certain additional creditors.
“With this sixth amended Adjustment Plan, the Oversight Board has reached agreements with all monoline bond insurance companies involved in the Government Adjustment Plan,” Jaresko said in written statements.
“The agreement to resolve the AFI claims provides additional support to the Adjustment Plan prior to the confirmation hearings and brings Puerto Rico one step closer to the end of its bankruptcy,” he added.
The sixth amended Plan of Adjustment reflects a Plan Support Agreement with Ambac Financial Group and Financial Guaranty Insurance Company (FGIC) to resolve both their recovery claims against the Government of Puerto Rico and the debts issued by the Authority for the Financing of the Infrastructure of the Government of Puerto Rico (AFI).
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AFI bondholders will receive $ 260 million in cash, this includes restriction fees and consummation costs. In addition, the agreement includes a contingent value instrument based on the potential superior performance of the Puerto Rico Sales and Use Tax of 5.5 percent in relation to the projections in the 2020 Certified Fiscal Plan and the fund’s rum tax collections. General of Puerto Rico in relation to the projections in the 2021 Certified Fiscal Plan.
The cash consideration for all AFI claims reflects a fixed reduction in the number of AFI claims of approximately 90 percent.