The bankrupt parent of Puerto Rico’s failed Doral Bank wants three more months to control its chapter 11 case without the threat of rival proposals as it looks to sell off more assets, the Wall Street Journal reported today. Doral Financial Corp.
Puerto Rico in Distress
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The Puerto Rico Electric Power Authority (PREPA) and its creditors were close to a deal Tuesday that would allow the cash-strapped utility to pay more than $400 million to bondholders, potentially staving off what investors feared might be the first default of many from the U.S. commonwealth, the Wall Street Journal reported today.
Puerto Rico's governor yesterday called for the commonwealth to be allowed to restructure its debts under U.S. Bankruptcy Code, while a newly appointed adviser to the U.S. territory said it is "insolvent" and will soon run out of cash, Reuters reported yesterday.
The governor of Puerto Rico has decided that the island cannot pay back more than $70 billion in debt, setting up an unprecedented financial crisis that could rock the municipal bond market and lead to higher borrowing costs for governments across the U.S., The Washington Post reported yesterday.