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Puerto Rico’s Bankruptcy Fees Seen Hitting $1.6 Billion

  • Oversight Board provides fee update in annual report
  • Through July 2022, professional fees stand at $1.2 billion
A street in the Old City of San Juan, Puerto Rico.

A street in the Old City of San Juan, Puerto Rico.

Photographer: Christopher Gregory/Bloomberg

Updated on

Fees and expenses related to the restructuring of Puerto Rico’s debt -- exacerbated by natural disasters and the pandemic -- are forecast to reach $1.6 billion by fiscal year 2026, cementing the island’s status as the most expensive municipal bankruptcy in US history.

“Uncertainty stemming from the series of recent natural disasters and the ongoing Covid-19 pandemic has resulted in an extended restructuring process contributing to the overall estimate,” the Puerto Rico Financial Oversight and Management Board, or FOMB, which is shepherding the island through bankruptcy, said in its annual report released late Sunday.