Leading House Republicans declared their opposition yesterday to allowing debt-ridden Puerto Rico access to chapter 9 bankruptcy protections, raising new uncertainty about how the island can emerge from its financial crisis, the Associated Press reported yesterday.
Puerto Rico in Distress
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Franklin Advisers and OppenheimerFunds said they will work with Puerto Rico and its power authority, PREPA, on a revitalization plan after a U.S. appeals court on Monday affirmed a lower court decision to strike down a Puerto Rican legislation granting local municipalities the right to enter bankruptcy, Reuters reported yesterday.
The U.S. Court of Appeals for the First Circuit affirmed a lower court decision to strike down the Puerto Rico Recovery Act aimed at granting local municipalities the right to enter bankruptcy, saying that the law is preempted by the Bankruptcy Code and thus void, Reuters reported yesterday.
The U.S. has its own version of Greece in Puerto Rico, and the meltdown could be nearly as ugly when it arrives, according to a commentary in Friday’s Wall Street Journal.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.