Puerto Rico presented a plan to creditors that asks them to take a deep discount on their debt–an aggregate around 45%, two sources familiar with the situation said, Reuters reported. The plan would see four tranches of bonds exchanged into two new bonds with different structures. Haircuts on the debt would differ according to which bonds are being exchanged and would reflect the current trading of those bonds, the sources said, with general obligation bonds getting the best treatment, followed by COFINA bonds, subordinated COFINA bonds and then other bonds which are supported by tax revenues.
