Puerto Rico

The creditors of Puerto Rico Electric Power Authority are allowing the authority to delay its application for a rate calculation mechanism for the new restructured debt corporation.

House members are considering legislation for Puerto Rico that would mandate the creation of a federal oversight board and make it responsible for restructuring the territory’s debt and determining the priority of debt obligations and pension payments, several sources said on Wednesday.

Several of the Supreme Court Justices seemed sympathetic with Puerto Rico’s complaints that a federal appeals court ruling striking down its debt recovery law for its utilities leaves it “in a no man’s land” where it “is not entitled to the benefits,” but “ is subject to the burdens” of Chapter 9.

Standard & Poor's Ratings Services said it has affirmed its CC rating on various issues of the commonwealth of Puerto Rico's tax-backed debt not currently in default.

The Supreme Court will hear oral arguments Tuesday on whether Chapter 9 of the federal bankruptcy code, which does not apply to Puerto Rico, nevertheless preempts or makes illegal a law adopted by the commonwealth that would allow its utilities to restructure their debts.

Puerto Rico Gov. Alejandro García Padilla is preparing to submit a bill for a moratorium on the payment of Puerto Rico’s debt.

Senate Finance Committee chair Orrin Hatch, R-Utah, on Thursday called for Democrats and the administration to be more transparent and realistic, after proposing “unworkable” solutions to Puerto Rico’s crisis as Congress continues to work toward bipartisan legislation for the commonwealth.

A Financial Industry Regulatory Authority arbitration panel this week approved the removal of a complaint about Puerto Rico bonds from a financial advisor’s record after concluding the advisor kept the investor adequately informed of the risks posed by the bonds throughout their seven-year relationship.

The Puerto Rico Electric Power Authority said Wednesday it anticipates an electricity rate increase by midyear, about four months earlier than previously indicated.

A New Jersey senator’s proposal to resolve the Puerto Rican economic crisis sets a dangerous precedent by elevating public pensions over the island’s other liabilities and thus undermining the time-honored priority of the general obligation pledge. And with many in the municipal market tiring of the island’s narrative and choosing to ignore the storyline, the consequences could be dire.