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Old 06-13-2016, 11:31 AM
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1695814 1695814 is offline
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Studying for nothing. I quit.
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Originally Posted by campbell View Post
Too lazy to do more than link to my blog:

- Congress soon to passing bill on PR
- SCOTUS soon to issue decision on PR
- Huge July 1 payment coming up (which obviously won't be made)

Jun 13, 10:18 AM EDT

High court rules against Puerto Rico in debt case

WASHINGTON (AP) -- The Supreme Court says Puerto Rico can't restructure the debt of its financially ailing public utilities to help overcome a decade-long economic crisis.

The 5-2 ruling Monday means the U.S. territory must wait for Congress to pass debt-relief legislation to help ease its fiscal woes.

The justices said federal bankruptcy law bars Puerto Rico from enacting its own law to restructure about $20 billion in debt.

Puerto Rico lawmakers passed the law in 2014 to help cash-strapped utilities meet obligations to bondholders and creditors. Puerto Rico argued that it could enact its own measures since the island is precluded from using bankruptcy law. But lower courts struck down the law.

The commonwealth is mired in recession and cannot pay $72 billion in public debt.
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