A lawsuit to invalidate $14 billion of Illinois bonds draws inspiration from Puerto Rico’s restructuring, according to a Bloomberg editorial. Indeed, munis are off to a blistering pace in 2019, with mutual and exchange-traded funds focused on the debt on track to pull in a record amount of cash this year.
Puerto Rico in Distress
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A federal control board overseeing Puerto Rico’s finances sued the U.S. territory’s governor Wednesday, saying he refuses to submit required documents and has approved tens of millions of dollars in unbudgeted spending amid a 13-year recession, the Washington Post reported. The board also accused Gov.
Puerto Rico’s federally created fiscal oversight board yesterday imposed a fiscal 2020 budget on the bankrupt U.S. commonwealth that for the first time limits spending choices by its government, according to the board’s executive director, Reuters reported.
A U.S. District Court judge on Thursday ruled that bondholders’ claim on the assets of Puerto Rico’s public employee pension system ended when the system filed for bankruptcy in May 2017, Reuters reported. The ruling is a setback for owners of nearly $3 billion of bonds sold by the system after a U.S.
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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.