Bond insurer Ambac Financial Group Inc. confirmed Thursday that all July 1 payments due on insured Puerto Rico bonds have been made in full. Chief executive Nader Tavakoli said the company "will not tolerate any actions that could impair our interests." Ambac "is ready to fully exercise all of its rights and remedies, if needed," he said in a statement. The Puerto Rico Electric Power Authority on Wednesday paid all principal and interest due to bondholders, The Wall Street Journal reported, buying the troubled utility time as it works to reach a deal with creditors. The news comes after the island's governor Alejandro Garcia Padilla said earlier this week that the commonwealth's more than $70 billion of debt are unpayable, calling for creditors to reschedule repayments. Ambac insures $2.4 billion net par of Puerto Rico bonds. Ambac shares were not yet active in premarket trade.
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