Puerto Rico’s Small Bondholders to Get `Hour or Two’ to Complain

The judge overseeing Puerto Rico’s bankruptcy process will set aside time next month for retail bondholders to complain about a proposal to cut their recoveries without having to file formal objections.

So-called Cofina bonds, which are backed by sale tax, are among the most widely held securities among retirees of the island, lawyers have told U.S. Bankruptcy Judge Laura Taylor Swain.

Swain on Dec. 19 said she had received letters laying out “social and economic” complaints about the proposed restructuring of about $17 billion in Cofina bonds. Those letters are not considered legal objections to the restructuring plan, she said. ...