Commonwealth of Puerto Rico

At issue is about $400 million the board would like Puerto Rico's government to retain.

While the Puerto Rico Senate would not take up a House-approved budget amendment that would allocate money to repay bondholders, analysts expect the Oversight Board to approve the funding.

The measure authorizes spending $10.9 billion from past years’ revenues for paying various Plan of Adjustment entities, including nearly $8 billion to pay bondholders and bond insurers.

Their filings in court follow similar arguments they made against teachers' associations last week.

House fails to approve budget amendment allowing payment to bondholders.

The board said a stay would inflict serious harm on Puerto Rico by plunging it into “financial chaos,” send the bankruptcy process “back to square one,” and would “needlessly delay the commonwealth’s economic recovery.”

The unrest potentially has short- and long-term impacts on the local government and its finances, analysts say.

Judge Laura Taylor Swain's action allows LUMA Energy to continue to operate.

Attorneys say the first step is to get a court to stay enactment of the Plan of Adjustment, but that it is unlikely.

Jaresko's resignation comes the same week as more than 40 Puerto Rican groups called for the disbandment of the Oversight Board in a letter to President Joe Biden.