Puerto Rico in Distress

ABI Analysis

The federally appointed financial oversight board tasked with guiding Puerto Rico’s debt restructuring has finalized a deal with two key creditors, adding to growing support for the proposed plan to fix the commonwealth’s debt crisis, Reuters reported.

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.

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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.