Currently businesses in Puerto Rico has no right to file for bankruptcy protections as any other business on USA soil. Quite frankly, I don't know how Puerto Rico survived the global economic collapse of 2008 without bankruptcy protections for it's businesses.
July 7, 2015
By Amanda Becker
U.S. Democratic presidential hopeful Hillary Clinton (click here) on Tuesday joined calls for changes in U.S. bankruptcy laws that would enable Puerto Rico's public entities to restructure some $72 billion in debt.
In Washington, two Democratic senators hope to move forward within weeks with legislation in Congress that would allow the U.S. territory to restructure debts in bankruptcy court, instead of risking chaos.
Governor Alejandro Garcia Padilla of Puerto Rico dropped a bombshell on debt holders a week ago by saying he wanted to restructure debt and postpone bond payments. He urged changes to U.S. bankruptcy laws that currently exclude Puerto Rico.
Like U.S. states, Puerto Rico cannot file for bankruptcy protection. But Puerto Rico's public entities do not have the ability of U.S. municipalities to enlist Chapter 9 of the U.S. Bankruptcy Code to restructure their debt.
"As a first step, Congress should provide Puerto Rico the same authority that states already have to enable severely distressed government entities, including municipalities and public corporations, to restructure their debts under Chapter 9," Clinton said in a statement given to Reuters....
July 7, 2015
By Amanda Becker
U.S. Democratic presidential hopeful Hillary Clinton (click here) on Tuesday joined calls for changes in U.S. bankruptcy laws that would enable Puerto Rico's public entities to restructure some $72 billion in debt.
In Washington, two Democratic senators hope to move forward within weeks with legislation in Congress that would allow the U.S. territory to restructure debts in bankruptcy court, instead of risking chaos.
Governor Alejandro Garcia Padilla of Puerto Rico dropped a bombshell on debt holders a week ago by saying he wanted to restructure debt and postpone bond payments. He urged changes to U.S. bankruptcy laws that currently exclude Puerto Rico.
Like U.S. states, Puerto Rico cannot file for bankruptcy protection. But Puerto Rico's public entities do not have the ability of U.S. municipalities to enlist Chapter 9 of the U.S. Bankruptcy Code to restructure their debt.
"As a first step, Congress should provide Puerto Rico the same authority that states already have to enable severely distressed government entities, including municipalities and public corporations, to restructure their debts under Chapter 9," Clinton said in a statement given to Reuters....
