Puerto Rico Supreme Court Hearing Raises Negotiations Risk
- Supreme Court may review case in March and decide in June
- `It gives them an additional stick,' MMA's Fabian says
Supreme Court to Hear Puerto Rico Debt Case
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The U.S. Supreme Court’s decision to review a Puerto Rico local debt-restructuring law rejected by a lower court risks prolonging negotiations with creditors to reduce the island’s obligations just as the commonwealth says its running out of cash.
The high court Friday said it would hear an appeal by the commonwealth to reinstate an island law that would allow some public agencies to ask bondholders to accept losses on the securities they hold. The disputed law would affect about $22 billion of the $70 billion in debt that Puerto Rico is seeking to impose losses on for holders.