Puerto Rico

The move follows the board’s decision to reject a Restructuring Support Agreement developed over three years between Puerto Rico Electric Power Authority and its creditors.

Puerto Rico's first mediation meeting in its Title III bankruptcy case will take place on July 12.

With fiscal year 2017 nearing an end in Puerto Rico, the Oversight Board was threatening to approve a budget Friday morning without local government agreement and the electric power authority was on the verge of default on a $423 million bond payment due Monday.

The SEC could charge workers from Morgan Stanley & Co. and Barclays Capital, who worked on the deals.

The U.S. Securities and Exchange Commission may take action against bankers from Barclays Plc and Morgan Stanley for their roles in Puerto Rico bond sales before a worsening fiscal crisis sent it hurtling toward bankruptcy.

Puerto Rico Title III Judge Laura Taylor Swain retained control over deciding about the island's sales tax bonds and diminished the Oversight Board’s role in the case at Wednesday’s hearing.

Puerto Rico's oversight board's decision against the power authority's restructuring support agreement moves $9 billion of debt closer to bankruptcy.

A deal to restructure $9 billion of Puerto Rico electric debt fell apart as a federal control board rejected the accord Tuesday, pushing the island’s main power utility closer to a potential bankruptcy.

Puerto Rico’s bondholders and bond insurers made court filings Monday to protect their interests as the historic municipal debt restructuring proceeds.

Puerto Rico said the money belongs to the agency as it works through bankruptcy proceedings to reduce its debt.