Puerto Rico Infrastructure Financial Authority

The ruling means the restructuring set for Tuesday will proceed.

The judges appeared skeptical about the need for a stay.

A group of bondholders and bond insurers also submitted on Sunday a statement opposing the teachers’ request for stay.

The teachers are trying to prevent enactment on March 15.

Puerto Rico teachers' associations are trying to delay the March 15 enactment of the Plan of Adjustment while they appeal it.

The restructuring is on track to occur March 15, officials said.

The Oversight Board also approved a new fiscal plan for the Highways and Transportation Authority.

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.

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.

The teachers' groups will request a stay of plan implementation.

More federal Medicaid funding and higher-than-expected economic growth will lead to more revenues, the board expects.

Swain's order affects $1.9 billion of PRIFA bonds and $384 million of CCDA bonds, for which insurers and bondholders will receive minimum recoveries of 14% and 29% of par, respectively.

Participants note there is a long road to sustainable recovery for the island that is dependent on the local government keeping its spending in check.