A federal judge on Friday rejected an attempt by a major Puerto Rico bondholder to throw out the U.S. territory’s historic municipal bankruptcy case, Reuters reported. U.S. District Judge Laura Taylor Swain ruled that the creation by the U.S. Congress of a financial oversight board for Puerto Rico under a law known as PROMESA and the appointment of the board’s members did not violate the U.S.
Puerto Rico in Distress
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The chief executive of Puerto Rico’s bankrupt electric monopoly has resigned after less than four months on the job, a disruption to the utility’s leadership as it struggles to rebuild a shaky power grid and tackle a $9 billion debt load, WSJ Pro Bankruptcy reported.
Puerto Rico Gov. Ricardo Rosselló went to court on Thursday to challenge the budget imposed by the Oversight Board for the fiscal year that started this week, saying that the panel had overstepped its authority, The Bond Buyer reported. Rosselló filed an adversary complaint in the U.S.
Puerto Rico will have significantly less money available for debt service because of the government’s failure to enact labor reform, the federally appointed financial oversight board charged with overseeing the island’s finances said on Friday, 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.