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They also favor giving protection of unionized government employees' pensions priority over payments even to holders of general obligation bonds guaranteed by the territory's constitution.
The suit filed in New York by holders of general obligation bonds seeks to invalidate a debt moratorium and fiscal emergency law passed in early April as the island struggles to restructure $70bn in public debt.
One of the many interesting elements in the city's bankruptcy proceedings is the treatment of the holders of general obligation bonds, which are $530 million out of the city's $18 billion in total debt.
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The city proposed repaying secured bondholders in full, but unsecured creditors, which it controversially deemed to include holders of general-obligation bonds, would take an 80% haircut.
The law protects holders of general-obligation bonds issued by Rhode Island and its municipalities by giving them priority in bankruptcy.
A third of this money will be spent on demolishing abandoned properties.In order to shed much of its $18 billion debt, Detroit proposes giving unsecured bondholders, including holders of general-obligation debt, 20 cents on each dollar.
They were surprised when they found that Puerto Rico's five-year plan called for deep cuts in all bond payments, including payments to the holders of general-obligation bonds.
On the creditor side, secured bondholders will be repaid in full but unsecured creditors (deemed to include, controversially, holders of general-obligation bonds) will get only 20 cents on the dollar.In this section Banking without banks Breaking the threshold Simple but uncertain The battle of Detroit Pay on say Thrown to the dogs The island defence One way no more Foe or frenemy?
Holders of allowed general unsecured claims will receive about 2.55percentt of newly issued common stock in Warnaco.
Some states have legislation to protect holders of their general obligation bonds, and others do not.
EAK and PKK are both professors and doctorate degree holders in the Chair of General Physics and Molecular Electronics, Department of Physics, Lomonosov Moscow State University.
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