Debtwire Puerto Rico Restructuring Forum 2017
June 7, 2017 | Harvard Club of New York City
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 determine the 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
Debtwire Municipals Managing Editor Paul Greaves, Cleary Gottlieb Partner Richard J. Cooper and Millstein & Co. Founder and CEO Jim Millstein will explore the likely issues and challenges facing the Puerto Rico government and its creditors in a Title III restructuring and what it will all mean for other stakeholders, such as pensioners and Medicaid recipients.
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?