(Reuters) - The federal board overseeing Puerto Rico’s finances disapproved a $9 billion debt restructuring deal covering the bankrupt U.S. territory’s public power monopoly, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The proposal was rejected in a 4-3 vote, the Journal said. (on.wsj.com/2tiL1ru)
Insurers of billions of dollars of Puerto Rican bonds had sued the island’s financial oversight board on Monday, saying that the board should be forced to approve the debt restructuring deal at Puerto Rico power utility PREPA and allow a final vote of the bondholders.
The lawsuit was filed by Assured Guaranty Corp and MBIA Inc’s (MBI.N) National Public Finance Guarantee in federal court in San Juan. Assured and National insure a combined $2.3 billion of PREPA bonds.
PREPA was not immediately available for comment.
Reporting by Arunima Banerjee in Bengaluru