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Bondholders may inject capital into Puerto Rico's GDB - report
September 1, 2015 / 6:47 PM / 2 years ago

Bondholders may inject capital into Puerto Rico's GDB - report

Sept 1 (Reuters) - Puerto Rico Government Development Bank officials and bondholders for the agency are planning to enter confidential debt restructuring talks as soon as next week, and bondholders could inject money into the bank, according to a Bloomberg News report on Tuesday.

The GDB, which provides loans to the U.S. commonwealth, has drafted a non-disclosure agreement for talks with a bondholder group represented by Davis Polk & Wardwell, it said. Puerto Rico representatives plan to ask some of the creditors to sign the agreement in order to start negotiations as soon as Sept. 8, Bloomberg reported.

The bondholders - which include Fir Tree, Avenue, Brigade and Candlewood - may inject fresh capital into the bank, with cash raised alongside an exchange of development bank bonds, the report said. Between $750 million and $900 million may be raised, it said.

Reporting by Jessica DiNapoli; Editing by Dan Grebler

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