Politicians in Washington, D.C., are coalescing around a financial plan to rescue Puerto Rico, just weeks before an expected major default on bond payments that would spread more turmoil through the island’s shaky economy, the New York Times reported today.
Puerto Rico in Distress
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ABI Analysis
Watch as ABI Editor at Large Bill Rochelle and ABI Resident Scholar Prof. Melissa Jacoby discuss issues that arose in the Supreme Court oral argument that took place in Puerto Rico v. Franklin California Tax-Free Trust. Click here to watch the discussion.
Democrats' support for emergency Puerto Rico legislation hinges on providing bankruptcy protection to the U.S. territory, the second-ranking House Democrat warned yesterday, The Hill reported. "We don't think it can be done without bankruptcy authority because we don't believe they'll get an ability to work out, with their creditors, payment schedules," said Rep.
The Supreme Court will hear oral arguments today on whether chapter 9 of the federal bankruptcy code, which does not apply to Puerto Rico, nevertheless preempts or makes illegal a law adopted by the commonwealth that would allow its utilities to restructure their debts, BondBuyer.com reported. Seven of the high court's members will hear arguments for one hour.