Main Street Bondholders Applauds Growing Support in Puerto Rico for Protection of Constitutional Bondholders

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WASHINGTON, March 29, 2016 /PRNewswire/ -- Main Street Bondholders applauds the ongoing support from leading Puerto Rican elected officials in support of a consensual solution to Puerto Rico's debt crisis despite actions by House Natural Resources Committee Chairman Rob Bishop (R-UT) to adopt a Super Chapter 9 approach to debt restructuring, and undermining the progress towards a consensual deal and the Puerto Rican Constitution.

Unlike Bishop's Super Chapter 9 legislation put forth in the U.S. House of Representatives, a consensual solution would assure continued interest payments on Puerto Rico's obligations consistent with the priority of bonds established by the Commonwealth's Constitution, and would promote voluntary negotiations between the island and its bondholders.

Without local leadership in Puerto Rico, it will be impossible to secure a consensual deal that balances the legal rights of bondholders with respect for the Puerto Rican Constitution. Efforts in Congress to impose the Obama Administration's Super Chapter 9 plan, by any name, are a severe hindrance to this ongoing effort and undermine the Puerto Rican Constitution.

Here is what members of Main Street Bondholders have said about these leaders:

"I was pleased to see gubernatorial candidate and Popular Democratic Party leader, Dr. David Bernier, produce a thoughtful and comprehensive proposal to address the Puerto Rico fiscal crisis – one which respects the Puerto Rican Constitution and supports a path forward for bondholders and the government to secure a consensual agreement," said Main Street Bondholders member, Teresa Garcia. "It gives me hope that some of our political leaders understand the gravity of this situation for the island's future financial integrity and for our people."

Main Street Bondholders member Joaquin Garcia de la Noceda said of gubernatorial candidate for the New Progressive Party Ricardo Rosselló, "Ricky Rosselló's commitment to respecting the priority and protections afforded to bondholders by our Constitution is an example for all Puerto Ricans to follow. He and Representative Jenniffer González Colón have made clear the necessity to respect and uphold the Puerto Rican Constitution."

Main Street Bondholders member Maria Milagros Rodriguez said of Resident Commissioner, gubernatorial candidate and president of the New Progressive Party Pedro Pierluisi, "I'm encouraged that Resident Commissioner Pedro Pierluisi has committed to prioritizing the Constitution and applaud his call for the Government to continue working with bondholders to reach a consensual solution to this crisis." 

"House Speaker Jaime Perello and Representative Rafeal 'Tatito' Hernandez have been strong in their support for the rule of law and for continuing negotiations with bondholders like ourselves within the existing legal framework," said Main Street Bondholders member Milagros Rodriguez. "I am very pleased that they have acknowledged our eagerness to remain at the table."

"It is encouraging that Angel Rosa and Hector Ferrer, candidates for the offices of resident commissioner, understand the importance of following through on Puerto Rico's constitutional obligations," said Main Street Bondholders member Carlos Alberto Ponce de Leon. "A clear pathway to a consensual deal has already been established, and Congress should not make it more difficult by passing legislation that tramples our constitutional rights."

Main Street Bondholders Coalition is a project of the 60 Plus Association, and is comprised of small bondholders from across America who are committed to a policy process that returns Puerto Rico to sound financial management, respect for the rule of law, and the protection of their retirement savings.

SOURCE Main Street Bondholders

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