McKinsey Payments in Puerto Rico’s Bankruptcy Come Under Fire
- Advocacy groups ask bankruptcy judge to deny further payments
- Group alleges company has conflicts of interest in Puerto Rico
The Puerto Rico Capitol building in San Juan.
Photographer: Xavier Garcia/BloombergThis article is for subscribers only.
A coalition of community groups is asking the judge overseeing Puerto Rico’s historic bankruptcy to withhold additional payments to McKinsey & Co. for its work on the island’s debt restructuring, alleging the management-consulting firm has conflicts of interest that it has failed to fully disclose.
In a letter sent this week to US District Court Judge Laura Taylor Swain, a group called Power 4 Puerto Rico said McKinsey’s final fee application should be denied, citing the court’s prerogative under the Puerto Rico Recovery Accuracy in Disclosures Act of 2021, or PRRADA.