Puerto Rico

As the board wrangles with local officials over the budget, neither the federal courts nor the executive branch have taken action to address a legal challenge to its authority.

A motion in Title III bankruptcy court by holders of $4 billion of PBA bonds may thwart an effort by the Oversight Board to nullify $6 billion of general obligation bonds.

The Board's authority to certify fiscal plans has become a flashpoint in an escalating battle with Puerto Rico's government.

Jaresko on Monday cited the almost universal dissatisfaction with the board as proof that it was doing its job.

The 2016 law is under fire from bond holders over the Oversight Board's failure to provide enough money for debt service and from local politicians over the board's efforts to impose fiscal austerity.

The General Obligation group's lawyer says the board should focus on structural reforms and not legal challenges to bondholder claims.

The board says that the governor appears to be deviating from the approved budget.

While the board is also seeking high court review, its goals are opposite of those of the union.

The court rejected giving a full hearing less than a week after a request was made to it to do so.

Puerto Rico Oversight Board says it can achieve much but not all of its pension restructuring plans without the local government's assistance.

Small holders are disproportionately impacted by the way the restructuring was conducted, said Glenn Ryhanych of BlueList Partners.

The electrical workers union wants the court to undo the board's actions since Aug. 7, 2017, in addition to declaring the board's appointments unconstitutional.

The federal tax issue that is at stake in both audits involve the federal payments for the direct-pay subsidy.

Oversight Board members are also asking for a stay on an appeal's court mid-May cutoff for their powers.

Governor's representative complains that the expenditures were legally adopted.

The ruling affirmed a lower court ruling that dismissed a claim by the commonwealth’s Legislative Assembly that the board exceeded its power.

The audit includes $121.5 million in Series 2011 T direct-pay qualified zone academy bonds and four Series 2011 R taxable of school construction bonds that totaled $ 756.4 million.

The latest reversal of Puerto Rico's Title III bankruptcy court again draws attention to PROMESA's failure to meet its goals of restoring fiscal responsibility and capital market access for Puerto Rico.

The December index value was down 0.7% from November.

About 30 investment funds filed a motion in the Employees Retirement System's bankruptcy to be named as its trustee.