Puerto Rico in Distress

ABI Analysis

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.

The Puerto Rico Oversight Board on Friday filed suit against a law that would scuttle the negotiated plan of adjustment for the central government debt, the Bond Buyer reported. The board filed an adversary proceeding in the Title III bankruptcy in the U.S. District Court for Puerto Rico against the governor and legislative leaders in defense of the negotiated plan of adjustment.

Puerto Rico’s attempts to overhaul its troubled public power utility are off to a rough start.

A plan to restructure $22 billion of Puerto Rico debt and fix the bankrupt island’s unfunded pension system won’t have the support of Governor Pedro Pierluisi, Bloomberg News reported. The governor intends to file an objection regarding the restructuring plan to the court overseeing Puerto Rico’s record bankruptcy, Pierluisi said in a statement yesterday.

Other Resources

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.