Puerto Rico

Last week’s filing of Title III by the Oversight Board, which sets the stage for a court-supervised reorganization of Puerto Rico’s debt, was just the start of a critical series of decisions for investors in the commonwealth’s bonds. There may be developments on several Puerto Rico fronts this week.

Puerto Rico Gov. Ricardo Rosselló and his financial advisors are insisting that the Title III judge cannot review the amount of debt that Puerto Rico will pay in the next ten years.

Judge Laura Swain of New York was chosen to oversee Puerto Rico's Title III restructuring process.

Bond insurers Assured Guaranty, Assured Guaranty Municipal and National Public Finance Guarantee filed a challenge to Puerto Rico’s certified fiscal plan.

Puerto Rico's government and oversight board will both have roles, said board member David Skeel.

The Oversight Board filed the petition with U.S. District Court in Puerto Rico.

Fitch Ratings said it has downgraded Puerto Rico Aqueduct and Sewer Authority bonds to C from CC.

Puerto Rico Gov. Ricardo Rosselló said Wednesday morning that the start of a Title III bankruptcy process for Puerto Rico was imminent.

Legislators and others urged Puerto Rico to pursue a court-organized debt restructuring.

Puerto Rico’s fiscal and debt crisis moved into a new phase marked by riots, active lawsuits, and biting political attacks.