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Bondholders sue over Puerto Rico debt-moratorium law
May 22 2016, 10:22 ET | By: Yoel Minkoff, SA News Editor
Holders of bonds from Puerto Rico's Government Development Bank are suingto challenge aspects of a debt-moratorium law that island officials say is crucial to maintaining essential services.
The federal lawsuit names Puerto Rico's Governor and Treasury Secretary as well as an unidentified bank receiver.
It argues that amendments give preferential treatment to local creditors at the expense of others in violation of U.S. and Puerto Rican law.