The Commonwealth of Puerto Rico continues its efforts to maintain fiscal and financial stability. This week, we expect the Commonwealth to move forward with an approximately US$3 billion General Obligation bond financing. This offering is expected to provide the Commonwealth with sufficient liquidity to enable the Commonwealth to analyze its options in a more methodical fashion. The Commonwealth agreed to waive sovereign immunity with respect to state and federal courts in Manhattan and the Federal District Court in Puerto Rico (as well as Commonwealth courts). However, the Commonwealth did not waive sovereign immunity with respect to assets located in Puerto Rico. Moreover, as general obligation debt, lenders cannot accelerate on a default despite request from investors for a provision permitting that remedy. Statement.
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