Skip to main content

Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About
Trending Topics
    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Entertainment & Media
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor, Employment, and Benefits
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations
    Industries

    View All

    • Aviation
    • Cannabis
    • Consumer
    • Energy
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Nonprofit Organizations
    • Real Estate
    • Sports & Stadiums
    • Technology
    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Environmental, Social, and Governance (ESG)

      We help clients create positive return on investments in people, products, and the planet.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    • Women in Dealmaking

      We provide strategic counsel on complex corporate transactions and unite dynamic women in the dealmaking arena.

    1. Home
    2. Insights
    3. Articles
    4. PROMESA promises

      Articles
    The front of the Puerto Rico Capitol building in San Juan on a sunny day, with columns in the front and a dome; a Puerto Rican flag flies from a flagpole in front of the building; palm trees line the street from side to side.

    Article

    PROMESA promises

    Aug 30, 2022

    LinkedInX (Twitter)EmailCopy URL

    Population decline, a contracting economy, natural disasters, and changes in tax status and available credits under the US tax code created a poor outlook for the Commonwealth of Puerto Rico.

    In response to the ongoing fiscal and humanitarian crisis in Puerto Rico, in 2016 President Obama signed into law the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). PROMESA promised a path forward to restructuring the Commonwealth’s debt and implementing fiscal reform to cultivate a sustainable economy, fiscal responsibility, and market access.

    Nixon Peabody served as bond counsel on the restructuring of more than $34 billion of outstanding debt, which was exchanged for $7.4 billion in new general obligations bonds and $8.7 billion in new general obligation contingent value instrument notes.

    As a result of its reduced total debt obligations, the Commonwealth now looks forward to a future of opportunity and growth.

    Driving the largest municipal restructuring in US history

    The Nixon Peabody bond counsel team worked diligently to address the numerous challenges during this transaction.

    The underlying financing documents required negotiation and approval by not only the Financial Oversight Board, but also representatives of four municipal bond insurers and numerous institutional investors. And the restructuring involved the issuance of general obligation bonds, contingent value instruments, and the establishment of more than 50 custodial trusts, resulting in more than 400 deliverables at issuance. We advised on the new authorizing legislation as well as a new debt policy governing the issuance of debt by the Commonwealth going forward.

    These challenges required teamwork and cooperation with Commonwealth entities including their advisors and counsel, municipal bond insurers, and institutional creditors.

    Teamwork Makes the Dream Work

    Our team’s unwavering pursuit of excellence, collaboration, and consistency literally paid off—Puerto Rico’s government has formally exited bankruptcy.

    “This is the most complex and comprehensive public debt restructuring in the history of the United States… [I]t allows Puerto Rico to return to the capital markets, eliminates uncertainty, and restores investor confidence in Puerto Rico, which will in turn promote investment, economic development, and job creation.” Omar Marrero, Puerto Rico Secretary of State/Lt. Governor

    Creating Positive Impact

    Relying on our deep relationships, industry knowledge, and experience, our bond counsel team was able to carry out the largest municipal restructuring in US history.

    This deal closing means that Puerto Rico’s government has formally exited bankruptcy and will resume payments to bondholders for the first time since 2016. And on top of this, there would be an immediate $7.78 billion cash payment to holders of some of the bonds.

    With NP by its side, Puerto Rico now has a path to access the credit markets and develop balanced annual budgets, and the impact of our work will be felt for years to come.

    Client Story

    Practices

    Public Finance

    Key Contacts

    Virginia Wong

    Partner / Practice Group Leader, Project Finance & Public Finance

    • Office+1 212.940.3028
    • vwong@nixonpeabody.com
    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

    Insights And Happenings

    • Podcast

      The future of transportation: Funding and logistical challenges

      Public Finance
      Feb 7, 2023
    • Podcast

      Public-private partnership asset recycling

      Public Finance
      Nov 15, 2022
    • Press Release

      Nixon Peabody serves as bond counsel on social bonds, helping to reduce homelessness in the City of Los Angeles

      Sep 29, 2022

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • Cookie Preferences
    • Privacy Policy
    • Terms of Use
    • Accessibility Statement
    • Statement of Client Rights
    • Purchase Order Terms & Conditions
    • Nixon Peabody International LLC
    • PAL
    © 2025 Nixon Peabody. All rights reserved