Puerto Rico Sets May 17 for Opening Faceoff in Debt Case
- Commonwealth owes $74 billion, plus $49 billion pension cost
- Oversight board asks court to apply local bankruptcy rules
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Puerto Rico and its creditors are set to meet for the first time in court on May 17 in San Juan before U.S. District Judge Laura Taylor Swain to begin restructuring the island’s debt.
The hearing will be the first time the commonwealth, hedge funds, bond insurers and mutual funds will meet in court since the island’s federal control board put the territory under court protection on May 3 to address $74 billion in debt and a $49 billion unfunded pension liability. A Puerto Rico agency, known as Cofina, that sold sales-tax bonds followed with a similar filing two days later.