A group of creditors holding Puerto Rico COFINA bonds said on Wednesday that they hoped the island receives the necessary humanitarian and governmental assistance to allow it a ‘speedy recovery’ and to ultimately ‘strengthen the island’s infrastructure for the long term.’
Puerto Rico, which filed the largest-ever US government bankruptcy in May, is struggling to recover from Hurricane Maria which hit last week. Much of the island remains inaccessible, communication is difficult and fuel is in short supply.
Since Puerto Rico filed for bankruptcy, creditor groups have litigated fiercely over who has first claim on the island’s limited cash. Specifically, holders of some $17 billion in so-called COFINA debt, backed by sales tax revenue, are locked in a lawsuit with owners of $18 billion in general obligation bonds who claim entitlement to all island revenues, sales tax included.