Aurelius Capital Management and Autonomy Capital will be forced to take steep haircuts on their Puerto Rico general obligation bonds under a new restructuring agreement reached between creditors of other Puerto Rico debt and the board overseeing the restructuring.
The oversight board created by the Puerto Rico Oversight, Management and Economic Stability Act earlier this year alleged that the GO bonds issued in 2012 and 2014 — the type owned by Aurelius and Autonomy — were unconstitutional.
