The U.S. Supreme Court on June 13 ruled (5-2) in the case of Puerto Rico v. Franklin California Tax-Free Trust (No. 15-233) that Puerto Rico’s Recovery Act is preempted by § 903 of chapter 9 of the Bankruptcy Code — even though Puerto Rico is explicitly excluded from authorizing its municipalities to seek chapter 9 eligibility. Watch ABI Editor-at-Large Bill Rochelle discuss the implications of the high court's ruling with Prof. Stephen Lubben, the Harvey Washington Wiley Chair in Corporate Governance & Business Ethics at Seton Hall University.
Prof. Stephen J. Lubben, holder of the Harvey Washington Wiley Chair in Corporate Governance & Business Ethics at Seton Hall, is an internationally recognized expert in the field of corporate finance and governance, corporate restructuring, financial distress and debt. He wrote a paper on Puerto Rico Recovery Act, titled "Puerto Rico and the Bankruptcy Clause," and has provided commentary on Puerto Rico's financial distress as the "In Debt" columnist for the New York Times' Dealbook blog.
ABI Editor-at-Large Bill Rochelle provides his authoritative take on legal developments affecting bankruptcy practice in ABI's Rochelle’s Daily Wire. Rochelle published for Bloomberg every day from 2007-15, and prior to his second career in journalism, he practiced bankruptcy law for 35 years.