Puerto Rico in Distress

ABI Analysis

The U.S. has its own version of Greece in Puerto Rico, and the meltdown could be nearly as ugly when it arrives, according to a commentary in Friday’s Wall Street Journal.

The bankrupt parent of Puerto Rico’s failed Doral Bank wants three more months to control its chapter 11 case without the threat of rival proposals as it looks to sell off more assets, the Wall Street Journal reported today. Doral Financial Corp.

The Puerto Rico Electric Power Authority (PREPA) and its creditors were close to a deal Tuesday that would allow the cash-strapped utility to pay more than $400 million to bondholders, potentially staving off what investors feared might be the first default of many from the U.S. commonwealth, the Wall Street Journal reported today.

Puerto Rico's governor yesterday called for the commonwealth to be allowed to restructure its debts under U.S. Bankruptcy Code, while a newly appointed adviser to the U.S. territory said it is "insolvent" and will soon run out of cash, 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.