Puerto Rico

There were 43 lobbying filings related to bankruptcy issues in the second quarter of 2015, up 26 percent from the previous quarter, according to a Bloomberg Government analysis on lobbying trends. The lobbying filings were up 72 percent from the second quarter of 2014 when there were 25 such filings, the data show. In the second quarter of this year, there were a total of 12 new filings by 11 separate companies that added bankruptcy as a lobbying issue, the BGOV data show. The increase is probably being driven by lobbying on issues related to Puerto Rico, according to BGOV. Seven of the 12 new filings referenced Puerto Rico or H.R. 870, which is the bill that would allow Puerto Rico's municipalities to file for bankruptcy protection, the data show.

Some hedge fund managers are trying to affect the outcome of Puerto Rico’s debt crisis to pad profits rather than accept losses from investment miscalculations, U.S. House Democrats said in a policy paper. It is “unjust and unrealistic” to demand full repayment on investments that were known to be risky, said the study, which criticized the funds’ opposition to legislation proposed in Congress that would let Puerto Rican agencies seek Chapter 9 bankruptcy protection. “They are now pushing teacher layoffs, pension cuts, and other quality-of-life reductions for Puerto Ricans as the ‘solution’ to the crisis in a self-serving attempt to enlarge their profits,” according to the report. The paper, titled “Profit At Any Cost” and prepared by the Democratic staff of the House Natural Resources Committee, was released Friday. Lawmakers return today from their summer recess. Republicans, who lead both chambers of Congress, have signaled little urgency in aiding Puerto Rico. Delays in the island’s development of a financial restructuring plan make it tougher to advance a Chapter 9 bill, Representative Tom Marino, a Pennsylvania Republican and chairman of a House Judiciary panel overseeing bankruptcy legislation, said earlier last week. Junk-rated Puerto Rico and its agencies have piled up $72 billion in debt, more than any state except California and New York, as the government borrowed to paper over budget deficits. Puerto Rico defaulted for the first time in August when it paid just $628,000 of $58 million due from one of its agencies.