Hurricanes, earthquakes, the removal of a governor from office and the COVID-19 pandemic have all prolonged the commonwealth’s bankruptcy to more than four years, adding to its costs and keeping the island in default. U.S. District Court Judge Laura Taylor Swain began confirmation hearings Monday on Puerto Rico’s debt-restructuring plan, which eases the burden from $33 billion of bonds and other debt, including cutting $22 billion of bonds tied to the central government down to $7.4 billion. It would also create a reserve trust to try and mend its broken pension system. The island’s bankruptcy is the largest ever in the $4-trillion municipal-bond market. Exiting bankruptcy will help the island move on and rebuild an economy that contracted for years.
Considering bankruptcy? Call us at 816-524-4949 or visit our website to schedule a consultation to determine if this is your best option.