U.S. District Court Judge Francisco Besosa declined Friday notices of automatic stay filed by Puerto Rico to freeze lawsuits filed by a bondholders group and three firms to invalidate the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act, Caribbean Business reported on Saturday.
Puerto Rico in Distress
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Puerto Rico on Friday defaulted on $779 million in general obligation bonds, and while the default is no surprise given the island’s financial woes, it’s still bad news, and has led to a downgrade from Fitch Ratings, Barron’s reported today.
Three major bond insurers are bracing for the possibility of a historic payout if Puerto Rico defaults on debt due today, the Wall Street Journal reported. Puerto Rico Gov. Alejandro García Padilla yesterday reiterated statements that the commonwealth cannot afford to make the payment and cited an April law that allows Puerto Rico to temporarily stop paying bond debt.
Having already defaulted multiple times over the past several months, the Puerto Rico faces more debt per capita than any U.S. state, according to a commentary on Realclearpolitics.com.
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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.