Debtwire Puerto Rico Restructuring Forum

June 7, 2017 | Harvard Club of New York City

Welcome To Debtwire's 4th Annual Puerto Rico Restructuring Forum

Over the last 12 months, the people of Puerto Rico elected a new governor, the island's government defaulted on constitutionally guaranteed debt, and the federal government appointed the Financial Oversight and Management Board to oversee the island’s restructuring. Creditors have not stood idly by. At one point over the past year, there were fifteen active creditor lawsuits in the District Court for Puerto Rico.

The future of Puerto Rico's economy, market access and fiscal health hangs in the balance. So, too, does its relationship with the United States. Voters will go to the polls in an 11 June referendum to status of Puerto Rico’s political future.

Please join the Debtwire team and esteemed panelists to get updates and progress for one of the most contentious restructurings in the Western Hemisphere.

Registration And Breakfast

Keynote Address: PROMESA Board Chairman José Carrión III

Taking the first step in a long journey to recovery, PROMESA Board Chairman José Carrión III was appointed in August 2016 to oversee the arduous task of negotiating Puerto Rico's USD 70bn debt restructuring. The magnitude of his US Congressional charge carries the fate of Puerto Rico's economy and opportunities for its people in the decades to come. Since its establishment, the board has clashed with factions who have various interests in the outcome of Puerto Rico's debt restructuring, such as the Governor's office, energy and health businesses, an assortment of government entities and most importantly, powerful local bondholders, among other groups.

Listen to Carrión discuss how much progress the PROMESA Board has made and what lies ahead in Puerto Rico's restructuring. Carrión, a Principal Partner and Co-Founder of Carrión, Laffitte & Casellas, an insurance brokerage firm, will also address some of the criticism leveled at the board and how members plan on overcoming such rebukes.

  • How does the board plan on tackling structural problems such as high unemployment, welfare issues, lack of opportunities, etc.?
  • Assessing the board's Title III function and impact on creditors.
  • How well is the board working with the Governor's office, legislature and court system?

Creditor Negotiations Inside And Outside The Credit Complex

The Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) has asserted itself as the referee upon the playing field of restructuring talks. In the first panel, participants will discuss the restructuring process, negotiations between debtors and creditors, and inter-creditor tensions:

  • Title III seems to pit creditors against the oversight board. What leverage do creditors have?
  • Will a confrontational approach with the island and its leadership deepen inter-creditor tensions?

Coffee Networking Break

Fiscal Reform and Economic Outlook

Governor Rossello has had to balance contentious reforms with maintaining some semblance of the status quo. There are indications that the Rossello administration disagrees with the PROMESA oversight board on fiscal and structural reforms. This political tussle has contributed to a hazy political and economic outlook. Meanwhile, on the ground, union workers are suing the state over a 2014 law barring salary increases to public workers. Additional pressure from Puerto Rico's public health care system's funding shortfalls will affect its most needy and poor. To top it off, a June 11 referendum will ask voters if Puerto Rico should become the US' 51st state or seek complete independence.

  • How has the dynamic so far played out between the new administration and the oversight board?
  • What reforms has the oversight board so far demanded that the government has enacted, or resisted?
  • Will we need to see additional legislation in Washington DC?
  • How does the island complete a turnaround with its current healthcare crisis?
  • How does statehood or independence affect the island’s outlook?

Event Concludes

*Agenda is subject to change

Venue


Harvard Club of New York City

35 W 44th St
New York, NY 10036

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