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Some of Puerto Rico's largest creditors, unsatisfied with a commonwealth debt-reorganization proposal and the direction of Congressional legislation, are working together to draft their own restructuring plan, according to four people with direct knowledge of the talks.

Representatives of bondholder groups and bond insurance companies met Monday at the New York office of PJT Partners Inc., which is advising MBIA's National Public Finance Guarantee Corp., to begin crafting together a plan that would reduce Puerto Rico's $70 billion in obligations, the people said, who asked for anonymity because the discussions are private. The commonwealth last week gave its creditors a revised restructuring proposal, which the people say includes losses that are larger than they're willing to accept.

The advisers and lawyers for traditional municipal-bond investors, hedge funds and insurers met as U.S. lawmakers move closer to legislation. The House Natural Resources Committee plans to make public Tuesday a discussion draft of a bill that would establish a control board to oversee Puerto Rico's debt restructuring and annual budgets. It's the most comprehensive legislation yet advanced by Congressional Republicans to help address the island's finances.

The investor plan would show federal lawmakers and the commonwealth that the different creditor groups and bond insurers were able to come together and craft a unified strategy to resolve the debt crisis, the people said. Previously, the different bondholder groups talked with Puerto Rico separately and gave their own proposals of how to restructure the specific debt they hold. The commonwealth's debt was sold by different issuers and backed by separate revenue streams or legal safeguards.

A broad, investor proposal will take at least several weeks to draft, three people said.

Puerto Rico's latest plan replaces the "growth bonds" included in the commonwealth's first proposal, which it unveiled Feb. 1, with capital-appreciation bonds, which delay interest payments until the debt matures, according to two people. Growth bonds, by comparison, would only repay if Puerto Rico's revenue exceeds certain projections. The revised proposal would also give bondholders slightly more money than the $1.7 billion of annual debt service payments included in the commonwealth's first proposal, the two people said. Coupons would also increase slightly.

Barbara Morgan, a spokeswoman at SKDKnickerbocker in New York who represents the Government Development Bank, which is overseeing Puerto Rico's restructuring, didn't have an immediate comment. Betsy Nazario, a spokeswoman at the GDB in San Juan, didn't immediately return a phone call and e-mail.

The House bill would create a five-member federal oversight board that would manage the island's debt restructuring. If it believed a specific Puerto Rico agency needed to reduce its obligations, the panel would initially negotiate with creditors to reach a voluntary workout, according to a draft summary that House Republicans have circulated. To help bring in investors who are reluctant to accept losses, the panel would have the ability to use the court system to force creditors to take less than what they're owed.

Instead, creditors would rather use collective action, where a specific restructuring requires approval from a majority of bondholders, the people said. PJT Partners will work with the various bondholder groups and bond insurers during the next several weeks to craft a proposal.

Investors will be working on their plan as the Government Development Bank faces a $422 million bond payment on May 1 that island officials say they cannot pay unless there's an agreement with creditors. Puerto Rico and its agencies owe investors another $2 billion on July 1.

Puerto Rico Governor Alejandro Garcia Padilla in June said the island was unable to repay all of its obligations on time and in full. The commonwealth and its agencies racked up debt by borrowing for years to fill budget deficits. The island's economy has failed to grow in the past decade and residents are leaving for the U.S. mainland to find work.