Puerto Rico

The Puerto Rico Electric Power Authority and its creditors reentered a restructuring support agreement after hashing out acceptable terms for additional financing.

Senate Democrats and Independents joined together on Wednesday to call for swift action to write and pass legislation that authorizes debt restructuring for Puerto Rico.

Puerto Rico's employment reached the highest level since January 2013.

The termination of a Puerto Rico Electric Power Authority restructuring agreement Friday night raised the risk of creditor suits and blackouts, participants said.

A House panel hearing on a federal oversight board for Puerto Rico has been rescheduled to Feb. 2 as a Republican governor is arguing against a Super Chapter 9 solution for the commonwealth but not ruling out bankruptcy protections for the territory's public authorities.

Puerto Rico’s legislature is a week or two away from passing energy reform legislation despite the fact that the power authority facing a midnight Jan. 22 deadline.

The Association of Financial Guaranty Insurers is urging House and Senate leaders to pursue federal oversight of Puerto Rico but avoid bankruptcy access for the commonwealth.

Financial Guaranty Insurance Co. filed a suit against Puerto Rico Gov. Alejandro García Padilla and members of his government, the latest challenge over their diversion of revenues from Puerto Rico authority bonds.

Puerto Rico Gov. Alejandro García Padilla implied that if the U.S. government took control of Puerto Rico's government, the U.S. government would be responsible for paying the island's debt.

A House committee panel hearing next week on the need for a federal financial oversight authority in Puerto Rico could pave the way for a legislative package to address the territory's problems by the end of March, according to congressional aides and lobbyists.

The Puerto Rico Senate announced Tuesday that it would hold hearings on the cause of the delay on audited fiscal year 2014 financial statements for the commonwealth.

Only Congress can take the necessary steps to fully resolve Puerto Rico's debt crisis, Treasury Secretary Jack Lew said in a letter to congressional leadership on Friday.

Puerto Rico general obligation bondholders are complaining that Puerto Rico has repeatedly cancelled negotiating sessions.

The Puerto Rico Electric Power Authority will run out of money in the first half of 2016 if it cannot get creditors to agree to a financial restructuring plan, PREPA chief restructuring officer Lisa Donahue said at a House panel hearing on Tuesday.

Assured Guaranty Ltd. and Ambac Financial Group Inc. filed a lawsuit challenging the constitutionality of Puerto Rico's revenue clawback strategy, fanning concern that a long, messy process lies ahead as the commonwealth seeks to restructure about $70 billion of public bond debt.

Insurance companies that guarantee Puerto Rico municipal debt filed a lawsuit challenging the constitutionality of the commonwealth's decision to divert revenue designated for some bonds to pay other creditors.

Lisa Donahue, the chief restructuring officer for the heavily indebted Puerto Rico Electric Power Authority, will be one of four panelists testifying at a House Natural Resources Committee panel hearing on Jan. 12 about the commonwealth’s energy problems.

A United States government argument in a criminal case being heard by the U.S. Supreme Court may backfire, leaving the U.S. responsible for paying Puerto Rico’s debt, a prominent Puerto Rico Senator said.

Ambac Assurance Corp. paid out $10.3 million to cover an insured portion of the $36 million that the Puerto Rico Infrastructure Finance Authority defaulted on Monday.

Two House Natural Resources Committee panels will hold hearings on Puerto Rico this month to discuss the possibility of energy reform and federal oversight for the ailing commonwealth, according to a committee spokesperson.