Regional news: Puerto Rico

US not liable for Puerto Rico bond losses

The US Court of Federal Claims has rejected claims from a group of Puerto Rico pension bondholders that the US government should compensate them for losses incurred during the territory’s US$120 billion bond and pension debt restructuring.

26 November 2020

New restructuring co-chair for Schulte Roth & Zabel

Schulte Roth & Zabel has hired a new co-head for its business reorganisation group, who says he is going to help build the firm’s fund relationships and continue to grow its debtor-side practice.

06 November 2020

Puerto Rico racketeering claims temporarily withdrawn

A former Paul Hastings bankruptcy lawyer that accused his old firm and other prominent parties of racketeering in Puerto Rico has withdrawn his complaint – but says he plans to re-file it.

24 July 2020

Puerto Rico begins “march out of bankruptcy” with adjustment plan

The board overseeing Puerto Rico’s US$129 billion bankruptcy has filed an adjustment plan to deal with the bulk of its government debt.

30 September 2019

Puerto Rico reaches US$35bn restructuring deal

Puerto Rico’s oversight board has reached an agreement with some of the territory's bondholders to resolve US$35 billion worth of debt and non-debt claims, but the island's government has vowed not to implement it.

17 June 2019

Draft US bill seeks to terminate Puerto Rican public debt

Democratic senators in the US plan to introduce a draft bill that will give debt-ridden Puerto Rico the right to terminate its public unsecured debt, and make US$15 billion of federal funds available for some of the island’s creditors – but not for hedge funds or bond issuers.

29 January 2018

PREPA creditors blocked from appointing receiver

A US court has blocked creditor attempts to appoint a receiver over Puerto Rico's insolvent electric authority, finding it lacked sufficient power to transfer control of the utility without gaining the consent of the island's federally appointed oversight board.

15 September 2017

“Breaking point” – how Puerto Rico finally went to court

After years of legal wrangling and negotiations with bondholders, Puerto Rico has filed for court protection in San Juan, citing debts of US$74 billion; GRR traces the final movements that led to the opening of the biggest local government bankruptcy proceeding in US history.

04 May 2017

Discount shoe retailer kicks off restructuring with Chapter 11 and CCAA filings

Global discount footwear retailer Payless has filed for Chapter 11 bankruptcy protection in the US, and is due to seek ancillary relief under the Companies’ Creditors Arrangement Act in Canada by the end of the week.

06 April 2017

Creditors allege Puerto Rico’s restructuring plan “violates” PROMESA

Three groups of Puerto Rico’s major creditors are alleging that a fiscal plan certified by the federally appointed board overseeing the territory’s restructuring violates its financial rescue law and constitution.

30 March 2017

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