The federal board overseeing Puerto Rico's financial rehabilitation is enlarging the U.S. territory's court-supervised bankruptcy, placing its nearly depleted pension system and its transportation agency under court protection, MarketWatch reported yesterday.
Puerto Rico in Distress
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The no-plastic enterprises that exist throughout Puerto Rico represent some of the biggest problems for the debt-swamped U.S. territory, and some of the biggest opportunities, Bloomberg reported today. From the fruit stands to the bakeries to the barbershops, there’s little love for the tax authorities – and apparently little interest in transactions they can track.
The U.S. Department of Justice's bankruptcy watchdog said on Friday that it plans to appoint a committee of retirees in Puerto Rico's bankruptcy to negotiate for pensioners facing benefit cuts as part of the island's debt restructuring, Reuters reported Friday.
While some investors flee Puerto Rico securities, a major bond insurer is still a buyer, the Wall Street Journal reported yesterday. Ambac Assurance Corp. has been aggressive this year in repurchasing distressed bonds that the company has guaranteed, said Chief Executive Claude LeBlanc said on an earnings call last week. The buybacks include municipal debt issued by Puerto Rico.
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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.