U.S. Treasury Secretary Jack Lew met with Puerto Rico bondholders on Friday, urging them to take part in an effort to restructure the U.S. territory's debt.
Lew told the group of bondholders that Puerto Rico needs an "orderly restructuring" of its debt that would require approval by U.S. Congress.
"Lew urged all stakeholders to come to the table," a Treasury representative said in a statement. "He warned that a disorderly default - a likely outcome in the absence of Congressional action - could trigger protracted and costly litigation."
Puerto Rico, with around $70 billion debt, in January asked its creditors to take a huge "haircut" that would slash its total outstanding debt by about $23 billion.
(via Reuters)
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