April 7 Puerto Rico's Government Development
Bank, the U.S. commonwealth's financing arm, has hired Cleary
Gottlieb Steen & Hamilton, a New York-based law firm with a
specialist practice in financial restructuring, the firm and
bank said on Monday.
Cleary Gottlieb is the second restructuring expert retained
by the development bank in the past month. In March, just days
before a $3.5 billion bond sale that helped the island avert a
looming cash crunch, the bank hired Millco Advisors LP, a
Washington-based affiliate of the firm Millstein & Co.
"As fiscal agent to the Commonwealth and its
instrumentalities, the GDB regularly solicits advice and counsel
from a number of legal and financial advisors with respect to
financing plans and other related matters," a bank spokesperson
said. "Cleary Gottlieb Steen & Hamilton LLP were engaged by the
GDB as part of these ongoing efforts. As is customary, GDB does
not comment on the nature or content of any legal advice."
The Cleary Gottlieb hiring was first reported by the Wall
Street Journal. A spokesman for the firm confirmed it had been
hired by Puerto Rico but declined to provide any other details.
(Reporting by Luciana Lopez and Edward Krudy; Writing by Dan
Burns; Editing by Jonathan Oatis)