Puerto Rico Board Wants Lawsuits Halted as It Seeks to Fix Debt
- Federal control panel asks the court to uphold a legal stay
- Promesa’s legal stay provision lasts through Feb. 15
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A federal oversight board given the task of stabilizing Puerto Rico’s debt crisis wants a U.S. court to temporarily postpone legal suits against the commonwealth that seek repayment of debt.
The seven-member panel Friday filed its stance on a provision within a federal law, called Promesa, which shields Puerto Rico from creditor lawsuits through Feb. 15. The board’s position echoes the commonwealth’s belief that the legal stay should remain in place. U.S. District Judge Francisco Besosa will rule on whether it should be lifted. The board said lawsuits should be postponed while it begins its task, required under Promesa, of restructuring the island’s $70 billion in debt and ending chronic budget deficits.