Commonwealth of Puerto Rico

After more than four years of intense negotiations between many stakeholders, the Oversight Board's Plan of Adjustment gets the OK from Judge Laura Taylor Swain, moving the commonwealth closer to emerging from bankruptcy.

The Economic Activity Index is up 3.5% from a year earlier.

Swain rejected several legal challenges to the Plan of Adjustment. The Oversight Board must file a final amended plan by Friday.

The bankruptcy judge is unlikely to rule on the Plan of Adjustment and related legal documents until the federal government has filed its defense.

The credit unions had bought $976 million of Puerto Rico bonds and notes, which they alleged they were coerced to purchase by Puerto Rico government and its agencies.

One observer questions if enough money is available.

The Act 154 excise tax brought in 21% of revenue to the General Fund July to October.

Pension laws had been perhaps the key issue that could have scuttled the island's debt restructuring deal.

Puerto Rico's government, bondholder Peter Hein, and eminent domain parties make call for varied changes to the board's proposed documents.

The board has long maintained that if the pension laws are allowed to stand, the Plan of Adjustment would not be implemented, scuttling the entire bankruptcy deal.

While the U.S. continues to lag pre-pandemic levels, Puerto Rico is now ahead by 2.3% from November 2019.

A fight is brewing over whether the Oversight Board can preempt some of the territory's pension statutes.

The issue is the power of the Oversight Board over several locally passed pension laws the board says might make the Plan of Adjustment unfeasible.

Nine groups or individuals say the Oversight Board's arguments are wrong.

Revenues were also up compared to the first quarter of fiscal 2021.

No consensus on whether the judge will make changes to the plan before approval.

Several recent challenges to the Plan of Adjustment that could threaten its approval.

A request by the Department of Justice could delay the confirmation of the Puerto Rico bankruptcy until March or beyond and that in turn could lead to the current deal's collapse.

The board says the judge's ruling on the issue will determine whether it withdraws the Plan of Adjustment.

The Oversight Board argued legal issues with bondholders, pensioners, credit unions, and others at Monday's Plan of Adjustment confirmation hearing.