Thursday, May 18, 2017

UPDATE ON PUERTO RICO BANKRUPTCY

PUERTO RICO'S BANKRUPTCY HEARING MARKS RESET OF ASSET SCRAMBLE
REUTERS
May 17, 2017
By Daniel Bases | NEW YORK

NEW YORK Puerto Rico is due to embark on a bankruptcy process on Wednesday that could take years to resolve, as investors scramble to get the highest recovery on their bonds. The debt is still trading at elevated levels versus what the government has set aside for payment under its financial recovery plan, and creditors worry about whether they will be able to recoup at those prices.

Puerto Rico, with 3.5 million U.S. citizens, has spent the last ten years in recession with debt piling up to pay for basic services. The poverty rate is at 45 percent, unemployment is at 11 percent and the population is shrinking as islanders emigrate to the mainland United States in search of a better life.