Congressman Pedro Pierluisi yesterday reintroduced legislation that would empower the government of the U.S. territory of Puerto Rico to authorize one or more of its government-owned corporations, if they were to become insolvent, to restructure their debts under chapter 9 of the U.S. Bankruptcy Code, according to a press release.
Puerto Rico in Distress
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Puerto Rico yesterday said that it would appeal a U.S. ruling that voided the island's restructuring law, saying that it left the U.S. commonwealth in legal limbo, Reuters reported yesterday. Late on Friday a U.S. federal judge ruled that Puerto Rico's so-called Recovery Act, which made some of its agencies eligible for court-supervised debt restructuring, violated the U.S.
A U.S. federal judge voided a controversial law that allows some of Puerto Rico's public corporations to default on their debt, saying in a ruling late on Friday that the U.S. commonwealth’s “Recovery Act” contravenes federal bankruptcy law, Reuters reported on Friday. The decision in the U.S. District Court has implications for around $20 billion of debt potentially affected under the act.
The federal judge who ruled that Caribbean resort Scrub Island can leave bankruptcy protection also turned down a request from the resort's lender, FirstBank Puerto Rico, that would have shut the 53-room resort down while another judge reviews the case, Dow Jones Daily Bankruptcy Review reported today.
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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.