Puerto Rico talks on with general obligation bondholders
SAN JUAN, Puerto Rico (AP) — Puerto Rico's government and a group of general obligation bondholders are holding preliminary talks aimed at reaching a deal they hope can serve as the basis for a broader restructuring agreement involving other bond investors.
The two sides said late Friday that the government will ask a federal judge to resolve by April 30 a lawsuit that was filed by general bondholders against the commonwealth on how to handle the repayment of Puerto Rico's sales tax bonds.
The renewed talks follow the federal control board's approval this week of a long-term fiscal plan that will force Puerto Rico to cut pensions by 10 percent and furlough tens of thousands of its workers if it cannot generate other savings amid a nearly decade-long recession.
