Puerto Rican journalists are suing the government to reveal the names of hedge funds with bond holdings in the island.
Puerto Rico is facing the restructure of $72 billion of debt, reports Reuters. The Ad Hoc Group, an organization of 35 hedge funds with $4.5 billion of Puerto Rican debt, has refused to name the majority of its members. Writes Reuters:
“The information is of great public interest, as investment firms seeking to collect debt are trying to influence financial decisions and public policy to ensure their profits,” Puerto Rico’s Center for Investigative Journalism said in a statement posted on its website on Monday.
The Puerto Rican government is already fighting with creditors to avoid lawsuits that could hit the island’s economy even harder, reports Reuters. Bondholders have filed lawsuits against Puerto Rico over a restructuring law from last summer. Governor Alejandro Garcia Padillo shocked bond holders June 29 when he announced that he wanted to postpone bond payments and restructure the debt again. The country fears becoming another Greece if it delays restructuring. Writes Reuters:
A fund manager from a prominent mutual fund firm who attended the meeting said he saw no sign investors would heed calls to accept voluntary bond restructuring. “I am pretty sure that the mood with the creditors is going to be: ‘I am going to stick hard with principles on whatever you promised’,” the fund manager said.
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