Former Detroit Bankruptcy Judge Steven Rhodes said that Puerto Rico needs to be put on life support and the way to do it is through bankruptcy, Bond Buyer reported today. Rhodes also called for a central control person or board, preferably designated by the federal government, to spearhead the proceedings in place of the island's governor and legislature.
Puerto Rico in Distress
Video Features
ABI Analysis
Puerto Rico’s main electricity provider extended an agreement with some bondholders to Nov. 20, giving the utility more time to negotiate with insurers that guarantee a portion of its debt against default, Bloomberg News reported on Friday. The Puerto Rico Electric Power Authority (PREPA) is trying to restructure $8.2 billion of debt to reduce its costs and free up cash for plant upgrades.
Sen. Chuck Grassley (R-Iowa), who chairs the Senate Judiciary Committee, said yesterday that he will convene a hearing on Puerto Rico's financial turmoil on Dec. 1, Reuters reported yesterday.
Moody's Investor Service said yesterday that Puerto Rico is likely to default on at least some of its $355 million in debt payments due Dec. 1, citing growing liquidity pressures, Reuters reported. The U.S. commonwealth, facing around $70 billion in total debt, is struggling to breathe life into a stalled economy with a roughly 45 percent poverty rate.
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.