Millstein Says Title III Was Inevitable for Puerto Rico

The transcript discusses the transition of government in Puerto Rico and the subsequent debt restructuring under Promessa. It explains the two paths for restructuring, Title 3 and Title 6, and the implications for bondholders and pensions. The creation of a fiscal plan by an oversight board is highlighted, along with the lessons learned from the process. The transcript also addresses the unique legal status of Puerto Rico compared to U.S. states and the risks associated with municipal debt.

What was the role of Mill Standing Company in the previous government?

• They were the main financial advisors.

• They were involved in legal disputes.

• They were responsible for the elections.

• They were not involved at all.

What are the two paths for debt restructuring under Promessa?

• Title 7 and Title 8

• Title 4 and Title 5

• Title 3 and Title 6

• Title 1 and Title 2

Why is judicial intervention necessary in Puerto Rico's debt restructuring?

• To avoid paying any creditors

• To increase the island's debt

• To change the island's capital structure

• To arbitrate disputes between creditors

What is the first step in the restructuring process according to the legal framework?

• Creating a fiscal plan

• Appointing a new governor

• Dissolving the oversight board

• Paying off all debts

What does the certified plan require regarding pensions?

• Some modification of pensions

• Complete elimination of pensions

• No changes to pensions

• Doubling the pension amounts

What special status does Puerto Rico have in terms of bankruptcy?

• It is treated like a state.

• It has a unique bankruptcy law.

• It cannot declare bankruptcy.

• It follows the same rules as municipalities.

What should bondholders consider when investing in municipal debt?

• The length of the bond

• The color of the bond certificate

• The popularity of the issuer

• The issuer's economic health