Federal Judge Signs Plan to Resolve Puerto Rico’s Bankruptcy in a Record-Setting Move
The plan comes nearly five years after Puerto Rico filed for the largest municipal bankruptcy in U.S. history.
On Tuesday, U.S. District Court judge Laura Taylor Swain . According to Swain’s ruling, — around an 80 percent cut.
“The provisions of the plan constitute a good faith, reasonable, fair, and equitable compromise and settlement of all claims and controversies resolved pursuant to the plan,” Swain said in the ruling.
Related: These 2 Franchisees in Puerto Rico Survived Hurricane Maria and Lived to Tell What They Learned
Puerto Rico has had financial problems over the years, declaring bankruptcy in 2017 after it announced it couldn’t pay the more than $70 billion debt it had accumulated. The debt, while partly accumulated through mismanagement and excessive borrowing, was further exacerbated by natural disasters and the pandemic.
Under this new debt payment structure, , instead of $1.6 billion annually. The territory but might have problems funding its pension system, which owes its present and future retirees an estimated $55 billion.
In a statement, that while this new plan isn’t perfect, the debt restructure is a good move for the future of the territory.
“The agreement, while not perfect, is very good for Puerto Rico and protects our pensioners, university and municipalities that serve our people,” Pierluisi said. “We still have a lot of work ahead of us.”
On Tuesday, U.S. District Court judge Laura Taylor Swain . According to Swain’s ruling, — around an 80 percent cut.
“The provisions of the plan constitute a good faith, reasonable, fair, and equitable compromise and settlement of all claims and controversies resolved pursuant to the plan,” Swain said in the ruling.
Related: These 2 Franchisees in Puerto Rico Survived Hurricane Maria and Lived to Tell What They Learned
