Puerto Rico Bill Said to Have Investor Cram-Down Mechanism
- Partial draft creates oversight board modeled after D.C.
- Board could proceed with restructuring after clearing hurdles
Governor Alejandro Garca Padilla speaks on Nov. 14, 2013, in San Juan, Puerto Rico.
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An emerging U.S. House Republican bill to address Puerto Rico’s debt crisis would create a strong oversight board and a mechanism to force creditors to accept a restructuring deal, according to a congressional official familiar with the legislative efforts and a written summary.
The board’s debt restructuring powers could include all creditors, but only after certain conditions are met, a congressional official said.