by In the FT, Eric Platt reports that US Congress has passed emergency legislation allowing Puerto Rico to restructure its debt. Unlike US cities and municipalities, Puerto Rico and other territories do not have access to protections under the US bankruptcy code. The legislation gives the island and its debt-issuing entities that right, so long as they have made “good-faith” efforts to negotiate with creditors and have received sign-off from the control board. With the deal, Puerto Rico will be able to continue funding basic services and avoid crippling lawsuits.
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Dirk Niepelt considers the following as important: Debt restructuring, Notes, Puerto Rico
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In the FT, Eric Platt reports that US Congress has passed emergency legislation allowing Puerto Rico to restructure its debt.
Unlike US cities and municipalities, Puerto Rico and other territories do not have access to protections under the US bankruptcy code.
The legislation gives the island and its debt-issuing entities that right, so long as they have made “good-faith” efforts to negotiate with creditors and have received sign-off from the control board.
With the deal, Puerto Rico will be able to continue funding basic services and avoid crippling lawsuits.