Puerto Rico in Distress

ABI Analysis

Judge Laura Taylor Swain rejected a proposed committee to represent retail holders in Puerto Rico's debt restructuring while she allowed parties representing Debt Recovery Authority bondholders to continue their efforts to protect their collateral from Oversight Board actions, The Bond Buyer reported.

The federally appointed financial oversight board tasked with guiding Puerto Rico’s debt restructuring has finalized a deal with two key creditors, adding to growing support for the proposed plan to fix the commonwealth’s debt crisis, Reuters reported.

U.S. District Judge Laura Taylor Swain has set a schedule for considering establishing a committee to represent retail holders of Puerto Rico bonds, The Bond Buyer reported. Judge Swain on June 30 approved a motion by a retail bondholder to consider the committee, which would provide legal representation of retail bondholders in the bankruptcy.