Puerto Rico's PRIFA did not transfer funds for payment: filing

Puerto Rico's Governor Padilla delivers his state of the Commonwealth address at the Capitol building in San Juan, Puerto RicoPuerto Rico’s infrastructure authority PRIFA did not transfer funds to its bond trustee in order to pay debt due Jan. 1, according to a regulatory filing on Monday, confirming a warning that the U.S. territory gave last week of a pending default. The trustee for PRIFA’s series 2005 C bonds did not receive funds from PRIFA to pay debt service, although it did receive funds from bond insurer Ambac, the filing said. Puerto Rico said last week that PRIFA would not have sufficient funds to make the full payment on its special tax revenue bonds, Series 2005A–C and Series 2006, and $36 million was expected not to be paid.

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