Puerto Rico in Distress

ABI Analysis

Congress took a major step yesterday toward enacting bipartisan legislation that would require McKinsey & Co. and other firms and professionals steering Puerto Rico through bankruptcy to disclose potential conflicts of interest, WSJ Pro Bankruptcy reported.

Puerto Rican citizens got a chance on Tuesday to express their fears about a massive debt overhaul plan before a judge with the power to decide Puerto Rico’s economic future, the Washington Post reported.

Puerto Rico is making its case in bankruptcy court for a plan to slash billions of dollars in debt, an expensive process that has so far racked up nearly $1 billion in legal and professional fees that island residents will pay, Bloomberg News reported.

A federal board overseeing Puerto Rico’s bankruptcy this week filed a new plan for restructuring the U.S. territory’s debt that preserves pension benefits for retired public-sector employees, a point of contention that had threatened to derail the debt-restructuring deal, WSJ Pro Bankruptcy reported. Hearings on the revised plan are scheduled to start on Monday in the U.S.