Puerto Rico government agency skips Oct. 1 interest payment - filing

lunes 5 de octubre de 2015 16:43 GYT
 

By Jessica DiNapoli

NEW YORK Oct 5 (Reuters) - Puerto Rico's Public Finance Corp, the government agency that defaulted in August when it paid only some of what was due on its bonds, has not made an Oct. 1 interest payment, according to a public filing on Monday.

The missed October payment is the third full consecutive payment the Public Finance Corp, a subsidiary of the island's Government Development Bank, has not made. It is unclear how much was due on Oct. 1.

The PFC skipped a $1.4 million payment due Sept. 1 and paid $628,000 of a $58 million payment due Aug. 1, a move that was considered a default by investors and creditors, the first by the U.S. Commonwealth.

Governor Alejandro Garcia Padilla has said that the Aug. 1 partial payment was not a default, because of the contractual model of the PFC.

U.S. Bank, the trustee for the PFC bonds, filed a public notice on Friday stating that it had not received the money for the Oct. 1 payment. The trustee will notify bondholders if it receives any funds or if there are any other material developments, according to the filing on Electronic Municipal Market Access.

Debt restructuring negotiations over the GDB began in late September.

Puerto Rico officials earlier in September proposed restructuring $18 billion of debt due in the coming five years as part of a broad plan to pull the island out of financial crisis.

Padilla said the island's debt was unpayable in June. (Reporting by Jessica DiNapoli; Editing by Richard Chang)