May 30, 2017

NEW YORK (Reuters) – Puerto Rico’s government on Tuesday said it will make a $13.9 million payment on June 1 to bondholders of the island’s largest pension, the Employees Retirement System or ERS.

The agreement, announced at a court hearing in federal court in Manhattan, settles a lawsuit filed on Friday as part of ERS’ ongoing bankruptcy. It does not resolve a similar dispute over about $16 million owed on June 1 to bondholders of Puerto Rico’s sales tax authority, COFINA.

A hearing on the COFINA dispute was underway in the Manhattan court on Tuesday.

(Reporting by Nick Brown; Editing by Meredith Mazzilli)