Puerto Rico in Distress

ABI Analysis

Today's "Eye on Bankruptcy" from Bloomberg Law and ABI features Judge Robert Drain (S.D.N.Y.) and Prof. Stephen Lubben (Seton Hall Law School) with host Bill Rochelle, discussing the implications of a series of important Supreme Court cases from this term: Baker Botts (professional fees), Wellness (bankruptcy court jurisdiction), Caulkett (lien stripping of mortgages), Bullard (appealability of final orders) and Harris (treatment of payments after conversion from Ch. 13).

U.S. Treasury Secretary Jacob J. Lew said that a failure by Congress to help Puerto Rico resolve its debts may hit the retirement portfolios of average Americans, as he stepped up his call for lawmakers to help the island, Bloomberg News reported yesterday.

Jeb Bush called for debt restructuring relief for Puerto Rico yesterday, including the possibility of bankruptcy for the struggling commonwealth government if needed, the Orlando Sentinel reported today.

Puerto Rico can crawl out of its $72 billion debt hole without defaulting on its government debt, says a report commissioned by holders of $5.2 billion of the U.S. commonwealth's government-backed bonds, Reuters reported 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.