Puerto Rico’s federal oversight board sued dozens of banks and bondholders to claw back more than $1 billion in fees and interest payments tied to debt the government claims is null and void, Reuters reported. The suits, filed just before a May 2 deadline, escalate the board’s conflict with hedge funds and other investors who hold some $6 billion of Puerto Rico general-obligation debt.
Puerto Rico in Distress
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A federal control board overseeing Puerto Rico’s finances says dozens of municipalities and public corporations have failed to pay or deposit $340 million into a retirement system for government employees, the Associated Press reported.
Puerto Rico’s federally created financial oversight board yesterday began filing the first round of scores of lawsuits seeking to recover money the bankrupt U.S. commonwealth paid to bondholders, businesses and others, Reuters reported. The board has until the end of this week to file certain claims after the U.S.
The White House said yesterday that it will ask the U.S. Senate to confirm the current members of Puerto Rico’s federally created financial oversight board after creditors of the bankrupt island successfully challenged the appointments on constitutional grounds, Reuters reported.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.