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Deal reached to cut bankrupt Puerto Rico's debt by US$24b

[BENGALURU] Puerto Rico would shed about US$24 billion of debt and move closer to exiting bankruptcy under an agreement with bondholders announced on Sunday by the US commonwealth's federally-created financial oversight board.

The deal cuts US$35 billion of bonds and claims to about US$11 billion and increases the ranks of general obligation (GO) and Public Buildings Authority bondholders that signed onto a plan to restructure core government debt and more than US$50 billion in pension obligations that the board filed in US District Court in September.