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.
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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.
The federal board overseeing Puerto Rico’s bankruptcy agreed Thursday to drop its opposition to legislation enacted earlier this week authorizing the island to raise new debt needed to complete its debt restructuring plan, WSJ Pro Bankruptcy reported. The disagreement between the oversight board and the U.S.
Puerto Rico Gov. Pedro Pierluisi (D) signed a bill on Tuesday intended to decrease the territory’s debt by half, but critics fear it could result in harsh austerity measures, The Hill 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.