Forbearance Fortitude

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporter Simone Baribeau and Greg Clark, head of research, about three situations involving forbearance agreements. A forbearance agreement is basically an agreement that creditors will not pursue options that are legally available to them—such as bond acceleration—to give a borrower time to get its financial house in order. On this podcast, Simone discusses the recent in the US District Court for the District of Puerto Rico by Judge Laura Taylor Swain that Puerto Rico Electric Power Authority (PREPA) bondholders do not have a secured claim on current and future net revenues. Simone explains that if this decision is upheld under appeal, that it could change the fundamental understanding of the revenue bond structure in a bankruptcy filing. Simone moves on to detail the latest court ruling involving American Dream Meadowlands, a retail and entertainment complex that has been star-crossed since it opened in October 2019. The podcast concludes with Greg discussing a large hospital system in western New York State, Catholic Health of Buffalo. Greg details how the declining number of surgeries precipitated a revenue shortfall which were further exacerbated by staffing shortages. As a reporter for Debtwire Municipals, Simone Baribeau covers the Puerto Rico and healthcare beats. As the head of municipal research, Greg Clark provides analysis of credits in various sectors of the municipal market. #forbearance #default #muniland