July 26, 2017

Puerto Rico Makes Unprecedented Move To Restructure Billions In Debt

09 May 2017, 08:00 | Ignacio Smith

Puerto Rico's Governor Ricardo Rosselló has filed for bankruptcy in federal court.

The commonwealth's court filing on Wednesday revealed the blunt reality of the matter: "Puerto Rico is unable to provide its citizens effective services", because of the weight of the island's debt, reads the filing by the federal control board.

Puerto Rico's overall debt burden is almost seven times larger than Detroit's was when it entered bankruptcy.

Simon Johnson, a professor of entrepreneurship at the MIT Sloan School of Management, warned Tuesday that failure to activate Title III would result in "chaos", as creditors filed lawsuits in multiple courts.

Board Chairman Jose Carrion did not immediately address those comments, but said in an earlier statement that while the bankruptcy-like process is needed to offset lawsuits, consensual negotiations are still preferable and that the board will pursue those with willing creditors. "A long and drawn-out battle with creditors will be catastrophic for Puerto Rico and its people", he said.

The financial collapse promises to impose deep losses on bondholders who for years snapped up Puerto Rico's securities, even as the government contended with a shrinking economy and chronic budget shortfalls.

The slide into bankruptcy would mark a new low in Wall Street's relations with Gov. Rosselló, a political newcomer who pledged as a candidate to repay the territory's debts, shrink the government and strengthen ties with the U.S.

SAN JUAN – Puerto Rico sought relief on Wednesday under a law enacted to help the United States commonwealth restructure its massive debt load, paving the way for what could be the largest-ever bankruptcy case involving a U.S. local government entity. This could pave the way for what could be the largest-ever bankruptcy case involving a United States local government entity, Efe news reported.

Kerala SSLC results 2017 check class 10 school wise results @ keralaresults
The Kerala Government has also launched a mobile app named "Saphalam 2017" for students to access their SSLC results easily . The exam was conducted in March at 2,933 centres in the state and 9 centres in Lakshadweep and the Middle-East.

This is probably not an option for Puerto Rico. And the scale of Puerto Rico's debts is far larger than any other major American government, exceeded only by those of the more populated and wealthier New York, California and MA.

CNN wants to hear from you: Do you live in Puerto Rico? Given the willingness for creditors to let the legal stay expire, it seems that Puerto Rico may only be able to restructure its debt using the courts.

"Puerto Rico's bankruptcy is unique in size", Williams said.

And those economic woes have taken their toll. The territory'sIts agriculture department suspended subsidies to farmers. The treasury withheld tax refunds.

Supplementing the Petition is a "Statement of Oversight Board In Connection with PROMESA Title III Petition" (the "Statement").

One group, the Center for Individual Freedom, spent millions on ads calling the Puerto Rico bill a "bailout", targeting congressional districts.

"Furthermore", he said, "it cements the political precedent set by Congress for high-spending states with unsustainable debts to ultimately follow suit". "Make no mistake: The board has chosen to turn Puerto Rico into the next Argentina".

Other News

Trending Now

Telugu TV Actor Pradeep Kumar found dead at Hyderabad residence
According to report in Hindustan Times, the couple even had a minor quarrel last night, before he took this grave step. Shravan, said to be a relative of Pavani, had recently come from Dubai and was staying at Pradeep's house.

Carrier group heads for Korean waters as Trump calls leaders
Navy officer overseeing military operations in the Pacific says the crisis with North Korea is at the worst point he's ever seen. Secretary of State Rex Tillerson said on Thursday that China had asked North Korea not to conduct any more nuclear tests.

Ander Herrera: 'Manchester United will respect Celta Vigo'
Celta Vigo may be in mid-table in La Liga, but this is partly due to them resting players for the Europa League. With the Europa League final in sight, Manchester United head to northern Spain this week to play Celta Vigo.

Does this leak prove Motorola is working on a new Android tablet?
The image also shows the navigation bar groups on-screen buttons to the left, and an app drawer icon to the right of the controls. However, it appears that the software takes a lot of inspiration from parent company Lenovo's tablets.

Iraq, US in talks to keep American troop presence after IS
Government forces launched a major offensive to recapture Mosul, the last major urban stronghold of Isis in Iraq , in October. The logic reflects concerns that a premature withdrawal from Iraq at the end of 2011, initiated by President George W.

Korea detains another American over alleged hostile acts
The Pyongyang University of Science and Technology (PUST) was founded by evangelical Christians and opened in 2010 . North Korea has arrested another US citizen for alleged anti-state crimes.

David Moyes: Sunderland manager to stay, but Jermain Defoe could leave
Moyes admitted early on in his tenure at the Stadium of Light that Sunderland could struggle this season. Pienaar said: "This is my first one [relegation] and it is the hardest thing to take in my career".

Daredevils snap losing streak, stun SRH by six wickets
David Warner and Shikhar Dhawan played all over the park, and aided by some sloppy Delhi fielding, crossed fifty in five overs. Delhi's sloppy fielding did not help matters as dropped catches and misfields added a substantial amount to Sunrisers' score.

Diego Simeone believes comeback against Real Madrid is possible
Ronaldo is now just one goal behind Barcelona rival Lionel Messi as the Champions League's top scorer this season with 10. We are one step closer to [the final in] Cardiff and we are happy.

Neymar to stand trial for alleged fraud and corruption over Barcelona move
Last June, Barcelona agreed to pay a fine of 5.5 million euros to the Spanish authorities to settle a related tax fraud case. At the time, Barcelona claimed the transfer fee was €57.1m (£48.5m), of which €40m (£34m) was to be paid to Neymar's family.