Through our Public Finance Matters blog, Mintz Levin's Bankruptcy and Public Finance practices have been covering the recent legislative developments in Puerto Rico. Our most recent blog posts provided a summary of the following developments.
Be PREPAred: PREPA Bondholders Greet Puerto Rico's Bankruptcy Legislation with Federal Lawsuit
On Saturday, June 28, Puerto Rico's Governor Padilla signed into effect Puerto Rico's new bankruptcy law for certain revenue bond issuers. Within 24 hours of the statute's enactment, two mutual fund complexes, owning approximately $1.7 billion in bonds of the Puerto Rico Electric Power Authority (PREPA), filed a complaint in the federal district court for Puerto Rico, seeking a declaratory judgment invalidating the fledgling legislation.
Puerto Rico Poised to Enact Bankruptcy-Like Legislation for Certain Revenue Bond Issuers
Puerto Rico's Governor Alejandro Garcia Padilla introduced debt restructuring legislation which, upon enactment, would provide a judicial debt relief process in Puerto Rico's courts for certain public corporations, including the Puerto Rico Electric Power Authority (PREPA), the Puerto Rico Aqueduct and Sewer Authority (PRASA) and the Puerto Rico Highways and...