Puerto Rico has officially requested to enter into a bankruptcy-like proceeding to restructure its massive debt load after talks with its creditors failed, CNBC reported yesterday.
Puerto Rico in Distress
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The cash-strapped island of Puerto Rico was hit with several lawsuits yesterday just hours after a stay on litigation expired as the commonwealth failed to reach a restructuring agreement with its bondholders on its massive debt load, CNBC reported yesterday.
With Puerto Rico on the brink of entering an unprecedented bankruptcy, Wall Street firms with billions of dollars on the line are losing hope of keeping restructuring talks out of the courtroom, the Wall Street Journal reported yesterday.
A federal stay barring Puerto Rico’s creditors from taking legal action against the commonwealth and most of its entities for nonpayment of debt expires on Tuesday, the Wall Street Journal reported yesterday. The stay was ordered under the Puerto Rico Oversight, Management and Economic Stability Act, or PROMESA, passed by Congress in June 2016.