{"id":6823,"date":"2019-02-14T10:33:26","date_gmt":"2019-02-14T16:33:26","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6823"},"modified":"2022-05-17T14:18:27","modified_gmt":"2022-05-17T19:18:27","slug":"18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/","title":{"rendered":"$18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Federal Court Approval"},"content":{"rendered":"<p>U.S. District Judge Laura Taylor Swain has approved a plan to restructure nearly $18 billion of Puerto Rico\u2019s Sales Tax Financing Corp. (COFINA) debt. Judge Swain, who is based in New York but oversees Puerto Rico\u2019s bankruptcy-like proceedings, said the Court believes that the COFINA plan is essential to the island\u2019s financial recovery efforts.<\/p>\n<p>The approval from Judge Swain required a two-step process. First, she had to determine whether the settlement agreement between COFINA bondholders and the Commonwealth was fair and reasonable. The agreement effectively provides a 53.65%\/46.35% allocation of Puerto Rico\u2019s Sales and Use Tax (\u201cSUT\u201d) revenue between COFINA and the Commonwealth, respectively. Judge Swain determined that the settlement \u201cwas a fair and reasonable settlement and compromise of the Commonwealth-COFINA Dispute given the substantial risks of litigation \u2026.\u201d<\/p>\n<p>In total, Puerto Rico owes over $70 billion to bondholders and other creditors, as well as another $50 billion in unfunded pension obligations. The territory has been attempting to restructure this $120 billion of liabilities since it filed for bankruptcy-like protection in May of 2017.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/\"  title=\"Continue Reading $18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Federal Court Approval\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>U.S. District Judge Laura Taylor Swain has approved a plan to restructure nearly $18 billion of Puerto Rico\u2019s Sales Tax Financing Corp. (COFINA) debt. Judge Swain, who is based in New York but oversees Puerto Rico\u2019s bankruptcy-like proceedings, said the Court believes that the COFINA plan is essential to the island\u2019s financial recovery efforts. The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6826,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4051],"tags":[2736,3256,3061],"class_list":["post-6823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-puerto-rico-debt-crisis","tag-cofina","tag-puerto-rico","tag-puerto-rico-debt-crisis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>$18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Approval | SSEK Law Firm<\/title>\n<meta name=\"description\" content=\"Judge Swain, who is based in New York but oversees Puerto Rico\u2019s bankruptcy-like proceedings, said the Court believes that the COFINA plan is essential to the island\u2019s financial recovery efforts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"$18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Approval | SSEK Law Firm\" \/>\n<meta name=\"twitter:description\" content=\"Judge Swain, who is based in New York but oversees Puerto Rico\u2019s bankruptcy-like proceedings, said the Court believes that the COFINA plan is essential to the island\u2019s financial recovery efforts.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"$18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Approval | SSEK Law Firm","description":"Judge Swain, who is based in New York but oversees Puerto Rico\u2019s bankruptcy-like proceedings, said the Court believes that the COFINA plan is essential to the island\u2019s financial recovery efforts.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/","twitter_card":"summary_large_image","twitter_title":"$18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Approval | SSEK Law Firm","twitter_description":"Judge Swain, who is based in New York but oversees Puerto Rico\u2019s bankruptcy-like proceedings, said the Court believes that the COFINA plan is essential to the island\u2019s financial recovery efforts.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"$18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Federal Court Approval","datePublished":"2019-02-14T16:33:26+00:00","dateModified":"2022-05-17T19:18:27+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/"},"wordCount":703,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg","keywords":["COFINA","Puerto Rico","Puerto Rico Debt Crisis"],"articleSection":["Puerto Rico Debt Crisis"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/","url":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/","name":"$18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Approval | SSEK Law Firm","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg","datePublished":"2019-02-14T16:33:26+00:00","dateModified":"2022-05-17T19:18:27+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Judge Swain, who is based in New York but oversees Puerto Rico\u2019s bankruptcy-like proceedings, said the Court believes that the COFINA plan is essential to the island\u2019s financial recovery efforts.","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/#primaryimage","url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg","contentUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg","width":1550,"height":872,"caption":""},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/18-billion-cofina-deal-to-restructure-puerto-rico-debt-gets-federal-court-approval\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"$18 Billion COFINA Deal to Restructure Puerto Rico Debt Gets Federal Court Approval"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; 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