Puerto Rico Representative Explores Bankruptcy Option

Puerto Rico’s non-voting representative in the U.S. Congress is exploring changes to federal law that would allow the commonwealth’s municipal agencies to file for bankruptcy to restructure their debts.

Pedro Pierluisi, whose formal title is resident commissioner, will ask congressional leaders about introducing a bill that would alter the U.S. Bankruptcy Code to let the agencies seek court protection from creditors, just as cities including Detroit and Stockton, California, did when they determined they were unable to meet financial obligations.