san juan bondholders nearly third puerto rico 17 billion outstanding general obligation bond tuesday unveil proposal debt restructure claim would help island avoid outright default burden overall 70 billion debt load government say pay 45 percent poverty rate lead steady exodus american citizens back mainland puerto rico face economic collapse without solution either change laws and/or involve agreement creditors bondholders represent billion go debt say would defer principal repayments bond june 2020. proposal issue ad hoc group go bondholders include mutual fund others represent law firm paul weiss rifkind wharton garrison addition creditors say would buy approximately 750 million new debt percent annual coupon principal repayments 2020 exchange would save commonwealth 1.9 billion debt service payments next five years accord document puerto rico government say proposal fail solve severe real challenge face puerto rico incur additional debt high cost answer commonwealth fiscal issue melba acosta president puerto rico government development bank say statement indeed exactly type wall street solution lead us precipice look over bondholders early criticize legislation currently rush puerto rico senate house tuesday would halt bond payments ahead 422 million debt bill owe government development bank due may 1. senate approve controversial legislation early tuesday morning house continue debate expect vote end day would like negotiate puerto rican government private good faith debt moratorium propose puerto rican legislature prompt public release andrew rosenberg lawyer paul weiss say statement accompany proposal go debt back full faith credit government typically senior debt pay others puerto rico go bondholders issue proposal restructure