Puerto Rico Finds Going Bust Isn't Cheap as Consultant Fees Rise
- Island spent as much as $154 million in run up to bankruptcy
- Court proceedings will boost tab as it seeks to cut debts
How Did Puerto Rico Go Bankrupt?
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For Puerto Rico, it’s been expensive to go broke.
Even before the U.S. territory filed for a tailor-made form of bankruptcy, the government spent as much as $154 million on financial consultants and lawyers as it negotiated with bondholders to cut its $74 billion debt, according to the terms in contracts provided by the island’s Office of the Comptroller. With creditors and Puerto Rico now squaring off in court, the fees will only grow.