Advisers and lawyers for certain bondholder groups and bond insurersthat hold Puerto Rico credit on March 28 met to start working on a counterproposalto the commonwealth's restructuring plan, Bloomberg News reported March 29, citing"four people with direct knowledge of the talks."
The representatives met at the New York office of , the news outletreported. PJT Partners advises MBIAInc. unit National PublicFinance Guarantee Corp.
The meeting follows a revised proposal from Puerto Rico and developmentsin proposed legislation by U.S. lawmakers related to a restructuring, accordingto the report. Under the latest plan, Puerto Rico replaced its growth bond proposalwith capital-appreciation bonds that suspend interest payments until the debt becomesdue, Bloomberg reported. In a discussion draft released March 29 by the House NaturalResources Committee, legislation would create an oversight board that would controlthe restructuring as well as the commonwealth's annual budgets.