A Puerto Rico labor union yesterday sued Governor Ricardo Rossello and the U.S. territory's financial oversight board, saying that pension cuts being proposed as part of the island's fiscal turnaround were unconstitutional, Reuters reported.
Puerto Rico in Distress
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Bankruptcy for Puerto Rico is looking ever more likely as the clock ticks down toward a May 1 deadline to restructure $70 billion in debt, ramping up uncertainty for anyone betting on returns from the island's widely held U.S. municipal bonds, Reuters reported today. When U.S.
Thom Tillis (R-N.C.) and Tom Cotton (R- Ark.) sent a letter on Friday to José B. Carrión III, chairman of the Financial Oversight and Management Board for Puerto Rico, expressing concern that Puerto Rico’s fiscal plan fails to comply with the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA).
Puerto Rican power utility PREPA and its creditors have reached a new deal to restructure $8.9 billion in debt through new bonds with longer maturities, the U.S. territory's government announced yesterday, Reuters reported.
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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.