The Bond Buyer
High Court to Hear Arguments Over Puerto Rico Debt Recovery Law
The question of the constitutionality of Puerto Rico's law permitting its utilities to restructure their debts was recently presented to the U.S. Supreme Court. Though Chapter 9 of the Bankruptcy Code does not apply to the commonwealth, it passed the Puerto Rico Public Corporation Debt Enforcement and Recovery Act in 2014, which was then challenged by Puerto Rico's creditors. Two lower courts held the law to be unconstitutional before Puerto Rico petitioned the Supreme Court to reconsider the case. In an interview with The Bond Buyer, Jim Spiotto discussed the legal issues before the Supreme Court.
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