Slightly less than a year after Mark Elliott sent his first correspondence to the judge overseeing the handling of COFINA assets related to the Puerto Rico municipal bankruptcy proceedings, he was prompted to send a second letter by the gross mistreatment of one particular class of COFINA bondholders–those holding Junior COFINA bonds.
This letter is included in the official record of the proceedings as Document # 3859 and it restated and expanded upon Mark’s May 2018 press release in which he vigorously objected to a proposed settlement concocted behind closed doors by two of Puerto Rico’s largest creditors.
In the letter, Mark writes that the Junior bondholders “have not been adequately represented in these negotiations” and that the lack of representation is obvious from the outcome. In particular, Mark objects to the notion that while Junior and Senior COFINA bonds are equally secured by sales and use tax revenues, the proposed settlement would permit Senior bondholders to recover nearly 100% of the value of their bonds while Juniors would receive just slightly over 50%.
It defies logic that similarly situated classes of creditors would receive such disparate treatment or that funds promised to one class of investors would be taken and delivered to another. Both of these points were made clear in Mark’s letter as he continued to advocate for the rights of all COFINA Junior bondholders.
To view the full text of Mark’s May 2018 letter, please click on the link below.