COFINA Senior Bondholders Applaud the Passage of Legislation that Addresses Puerto Rico's Debt Crisis

WASHINGTON, June 29, 2016 /PRNewswire/ -- The senior creditors of the Puerto Rico Sales Tax Financing Corporation ("COFINA") issued the following statements today, with respect to the Senate's approval of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"):

"We applaud the bipartisan manner in which Congress worked to craft and pass this vital legislation that puts the Commonwealth on a path to economic and fiscal health—all without imposing any cost on U.S. taxpayers. After enduring years of financial and social duress due to a lengthy recession and excessive government spending, the roughly 3.5 million American citizens living in Puerto Rico can finally look forward to the revitalization of local commerce and ultimately economic growth. Although extensively negotiated legislation is rarely perfect from the perspective of any one stakeholder, PROMESA represents pragmatic public policy. The bill's components will help head off a near-term crisis by balancing the best interests of the Puerto Rican people with a process for restoring fiscal order and respecting creditors' rights," said former Senator Judd Gregg, a senior policy advisor to the COFINA Senior Bondholders Ad Hoc Group.

Susheel Kirpalani, a partner at Quinn Emanuel Urquhart & Sullivan and the legal counsel for the COFINA Senior Bondholders Ad Hoc Group added the following with respect to future negotiations with the Commonwealth: "Passage of PROMESA is a very positive step toward helping creditors reach fair and equitable restructuring agreements with the Commonwealth and its issuers. Given our group's record of negotiating constructively and in good faith with various stakeholders over the past year, we feel well-positioned to reach an eventual outcome that balances our rights as senior, secured bondholders of the Commonwealth's historically highest-rated issuance with Puerto Rico's liquidity needs and economic growth objectives."

About Senator Judd Gregg

Gregg served as a United States Senator from 1993 to 2011.  He was Chairman and Ranking Member of the Senate Budget Committee and also Chairman and ranking member of the Health, Education, Labor and Pension Committee.  He was a senior member of the Senate Banking Committee and chaired the Appropriation's subcommittees on Foreign Operations; Homeland Security; and Commerce, State and Justice.   He also served on President Obama's National Commission on Fiscal Responsibility and Reform (Simpson-Bowles) and worked to produce a comprehensive plan to reduce the national debt. Prior to his tenure in the Senate, Gregg served as Governor of New Hampshire and as a U.S. Representative. As Governor, Gregg steered New Hampshire through one of its most difficult economic times leaving it with a balanced budget and a strong infrastructure, which included reorganizing the State's major utilities and banking system.

About the COFINA Senior Bondholders Ad Hoc Group

The Group is a coalition of creditors made up of retirees and individual investors in Puerto Rico and throughout the United States, as well as asset managers GoldenTree Asset Management LP, Merced Capital LP, Tilden Park Capital Management, Whitebox Advisors LLC, and others. 

Media Contacts

Chris Mittendorf  Edelman NY (on behalf of the COFINA Senior Ad Hoc Group) 212-704-8134 [email protected]

Cheyenne Hopkins Beach  Edelman D.C. (on behalf of the COFINA Senior Ad Hoc Group) 202-326-1789 [email protected]

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SOURCE COFINA Senior Bondholders