UPDATE 1-Puerto Rico government agency skips $1.4 mln Oct. 1 payment

lunes 5 de octubre de 2015 17:35 GYT

(Adds amount of missed payment)

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 a $1.4 million Oct. 1 interest payment, according to a spokesman for the island's Government Development Bank and a public filing on Monday.

The missed October payment is the third full consecutive payment the Public Finance Corp, a subsidiary of the GDB, has not made. The payment totaled $1.4 million, according to a GDB spokesman.

The PFC skipped another $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 and Jonathan Oatis)