NEW YORK, Dec 14 (Reuters) - Bond insurer Assured Guaranty said in a letter to U.S. Treasury Counselor Antonio Weiss that it is disappointed with the Treasury’s view that Puerto Rico requires a federal restructuring regime, as it ignores the impact on bondholders.
Debt holders would be “materially damaged” through a failure by Puerto Rico to put its obligations above its short-term political motivations, Assured Guaranty said in a letter attributed to CEO Dominic Frederico.
Puerto Rico does not have access to Chapter 9 federal bankruptcy laws to restructure its public agencies, as other states do. Weiss said last week that a federally legislated restructuring regime would bring all of the Commonwealth’s financial liabilities into a “coordinated, court-supervised process.”
Reporting by Megan Davies and Nick Brown; Editing by Diane Craft