SAN JUAN, Puerto Rico (AP) — A federal control board that oversees Puerto Rico’s finances is asking a court to invalidate more than $6 billion worth of debt issued by the U.S. territory, a move that would hit bondholders.
The board said late Monday the debt includes all general obligation bonds that were issued in 2012 and 2014 in “clear violation” of debt limits established by Puerto Rico’s Constitution. A group of unsecured creditors that joined the motion also said the debt violates balanced budget requirements because the money was used to finance deficit spending. Continue reading “Board seeks to invalidate $6B worth of Puerto Rico’s debt”