Help Center

Puerto Rico's options: Default, restructure, bailout or bankruptcy?

How exactly Puerto Rico could restructure its mountain of debt is the $72-billion question that everyone from New York to San Juan is asking, according to a commentary in The Hill. As an unincorporated territory of the U.S., Puerto Rico cannot file for bankruptcy protections under Chapter 9 of the United States Bankruptcy Code. Puerto Rico is caught in a legal Catch-22: it is allowed to pile up bonds as if it were a municipality but it cannot restructure or declare bankruptcy like Detroit, Stockton or any of the other American cities that have defaulted in recent memory.  
 
Article Tags: 

ABI sites use cookies and similar technologies to improve your web experience. By using our sites, you are agreeing to our Privacy Policy and Terms of Service, including our Cookie Policy.