The losing bidder on a deal to repair Puerto Rico’s storm-damaged power grid is disputing the contract award while residents grappled yesterday with a power outage that officials blamed on one of the winning firms, WSJ Pro Bankruptcy reported.
Puerto Rico in Distress
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Puerto Rico’s governor announced a deal last month with U.S. Treasury Secretary Steven Mnuchin that they said would release billions of dollars in federal loans to the island government’s coffers, but there are doubts that will take place, according to a WSJ Pro Bankruptcy commentary.
Puerto Rico bondholders in court yesterday denounced the island’s sales tax authority, COFINA, as a sham “end-run” around its constitution, in a creditor battle for control of the bankrupt, storm-ravaged island’s future tax revenues, Reuters reported.
Puerto Rico’s latest turnaround plan boosts the insolvent U.S. territory’s projected ability to pay debt, but the plan’s absence of pension cuts and layoffs means some alterations may be in store, courtesy of the island’s oversight board, Reuters reported.
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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.