Puerto Rico has asked a U.S. court for a quick decision in its appeal against a federal court ruling that voided a local bankruptcy law, arguing that the decision hampers its efforts to deal with a financial emergency that could disrupt basic public services on the Caribbean island, Reuters reported on Friday.
Puerto Rico in Distress
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Moody’s Investors Service said that there’s a high probability that Puerto Rico will default on its general-obligation, sales-tax or Government Development Bank debt during the next two years, Bloomberg News reported yesterday.
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 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.
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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.