The cash-strapped island of Puerto Rico was hit with several lawsuits yesterday just hours after a stay on litigation expired as the commonwealth failed to reach a restructuring agreement with its bondholders on its massive debt load, CNBC reported yesterday.
Puerto Rico in Distress
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With Puerto Rico on the brink of entering an unprecedented bankruptcy, Wall Street firms with billions of dollars on the line are losing hope of keeping restructuring talks out of the courtroom, the Wall Street Journal reported yesterday.
A federal stay barring Puerto Rico’s creditors from taking legal action against the commonwealth and most of its entities for nonpayment of debt expires on Tuesday, the Wall Street Journal reported yesterday. The stay was ordered under the Puerto Rico Oversight, Management and Economic Stability Act, or PROMESA, passed by Congress in June 2016.
President Donald Trump said yesterday that he is opposed to a push to help Puerto Rico resolve its $70 billion debt load as the U.S. territory faces looming austerity measures amid a deep economic crisis, the New York Times reported yesterday.
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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.