Puerto Rico Infrastructure: Suspension may constitute bond default

By Caroline Salls

Pittsburgh, July 7 – The Puerto Rico Infrastructure Financing Authority said a June 24 executive order from Puerto Rico’s governor that suspends any obligation to transfer petroleum products excise tax revenues may constitute an event of default on its series 2015 dedicated tax fund revenue bond anticipation notes.

However, the authority said the executive order bars any enforcement of default-related rights.

The authority said the executive order designates the series 2015 notes as covered obligations and suspends the obligation to transfer funds in connection with the notes.

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