Puerto Rico’s Bankruptcy Exit Likely Pushed Out to 2022
- Judge Swain gives U.S. DOJ until Jan. 7 to defend Promesa law
- Commonwealth at risk of increases in retirement expenses
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Puerto Rico creditors hoping the commonwealth exits its more than four-year bankruptcy in 2021 will need to wait a bit longer as the U.S. Department of Justice may weigh in on the process.
U.S. District Court Judge Laura Taylor Swain is reviewing Puerto Rico’s plan to restructure $33 billion of debt, including $22 billion of bonds, after finishing closing arguments Tuesday on the debt adjustment plan. The hearings ended after hurricanes, earthquakes, political upheaval and the coronavirus pandemic postponed the bankruptcy process for years.