NEW YORK (Reuters) - Bankruptcy for Puerto Rico is looking ever more likely as the clock ticks down toward a May 1 deadline to restructure $70 billion in debt, ramping up uncertainty for anyone betting on returns from the island's widely held U.S. municipal bonds.
When U.S. Congress last year passed the Puerto Rico rescue law dubbed PROMESA, it froze creditor lawsuits against the island so its federally appointed oversight board and creditors could negotiate out of court on the biggest debt restructuring in U.S. municipal history.
The freeze expires on May 1, however, and an extension by Congress is "not going to happen," said a Republican aide to the House Committee on Natural Resources, which is in charge of territory matters.
A round of mediated talks is scheduled to begin on Thursday. But absent an agreement soon, a growing number of analysts say Puerto Rico will seek protection from creditors under PROMESA's court-sanctioned restructuring process, akin to U.S. bankruptcy.
Forbearance deals could let negotiations continue past May 1, but a source directly involved in the talks said avoiding an eventual bankruptcy is "impossible."
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7 comments:
Easy come , easy go , obama is a jerk. 8 years of misery!
Ever been to Puerto Rico?? They are the laziest people on the planet! No wonder that territory is bankrupt.
Plus, most of them - ironically - hate Americans. Give the country back. We don't need it and it's now a $70 billion liability.
They knew they were getting bailed out. why should they bother with it.
They want to be a state...a welfare state.
We should let them go! They don't want us using the Naval Base any more...all they want is citizenship and welfare!
Tough luck the US is broke so they are on their own. What about our Vets / homeless / abused children / elderly that we do nothing about. These Americans should be number one uno.
Anonymous said...
Ever been to Puerto Rico?? They are the laziest people on the planet! No wonder that territory is bankrupt.
Plus, most of them - ironically - hate Americans. Give the country back. We don't need it and it's now a $70 billion liability.
April 14, 2017 at 6:59 AM
Yes they are and those idiots are over here mooching off our government benefits while proudly sporting their PR flag instead of the U.S. flag.
@ 6:59 AM You're on the money! They HATE Americans. Just ask anyone who's ever made the mistake of vacationing there. Cut ALL ties with them. They want to be independent from America?, let them. It's also a springboard for drug cartels that have been forced out of South America. Puerto Rica - Mean People - Stay Away if You're Smart
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