Investors could try to force payment of bonuses Puerto Rico: document – Reuters

       

By Jessica DiNapoli

       

(Reuters) – Holders of at least 20 percent of the bonds Public Finance Corp (PFC) of Puerto Rico, whose payments the Commonwealth defaulted on Monday, would have access sue the island for a trustee to initiate a process on their behalf, according to documents.

       

According to documents filed Tuesday with the Electronic Municipal Market Access (EMMA), the bond agreement allows US Bank, the trustee for the debt, act for the rights of investors, according to the direction they want to possess, least 20 percent of outstanding papers.

       

On Monday, Puerto Rico failed to pay a bond maturing on August 1 its public financial corporation, delivering only $ 628,000 of a total of 58 million that was canceled.

       

Although the language of the presentation to EMMA does not explicitly mention a case, it is considered that a lawsuit is likely to force a payment method.

       

Daniel Hanson, Height Securities analyst, said last week in a research note that market participants probably would file a lawsuit in San Juan week.

       

A US Bank spokesman declined to comment and Todd Hagerman, spokesman for the Government Development Bank of Puerto Rico, also declined to comment.

        
       

(Reporting by Jessica DiNapoli in New York; Editing by Janisse Huambachano Spanish)

       
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