Overall, Puerto Rico has roughly $12.5 billion worth of outstanding general obligation bonds, according to the lawsuit. The lawsuit said bondholders relied on that key protection when they bought general obligation bonds two years ago. That amount includes more than $700 million in general obligation bonds that are supposed to be guaranteed under the island's constitution. "When Puerto Rico approached the capital markets in late 2013 to issue the 2014 GO Bonds, Governor Garcia Padilla trumpeted the bonds' constitutionally guaranteed priority." A group of bondholders on Tuesday sued Puerto Rico's government as debt negotiations fell apart less than two weeks ahead of what would be the largest default in the island's history.

Source: ABC News June 21, 2016 16:04 UTC