Bankruptcy

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.

The legislation Gov. Pedro Pierluisi signed late Tuesday is sufficient to issue new bonds, the board said, which was integral to getting the island out of its $33 billion bankruptcy.

A lawsuit accusing underwriter Stifel of negligence on one bond issue is pending and broader claims related to the financings are being considered.

Nathan Coco and Megan Preusker joined the firm this month, deepening the expertise offered by the firm's bankruptcy and restructuring practice.

Authorization to sell new bonds to replace existing debt is a necessary step to help finalize the island territory’s record bankruptcy.

New leaders could create a joint blueprint while sidestepping another fiscal cliff, said Peter Goldmark, a major player when the city nearly went bankrupt.

The “tool kit” legislation expands powers of the Local Government Commission, including a last-resort legal process for voluntary or involuntary dissolution.

Having earnestly settled with every major constituency, it is time for the Board to do the right thing by abandoning unnecessary pension cuts and freezes.

Lawyers for the commonwealth warned that Puerto Rico’s legislature will not pass the legislation for new bonds needed by the plan of adjustment if the plan cuts pensions.

The Oversight Board struck a deal with the main group of the territory’s unsecured creditors, easing the path to final court approval of a debt restructuring.