Puerto Rico lawmakers approved a bill to establish a local fiscal adjustment board, a key measure in Governor Alejandro Garcia Padilla’s plan to lighten the island’s $70 billion debt burden, Bloomberg News reported yesterday. The bill now goes before the governor for approval. Details weren’t immediately available.
Puerto Rico in Distress
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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’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.