Judge Approves Deal to Resolve Puerto Rico Bankruptcy
Source: New York Times
MIAMI — Puerto Rico received approval from a federal judge on Tuesday to leave bankruptcy under the largest public sector debt restructuring deal in the history of the United States, nearly five years after the financially strapped territory declared that it could not repay its creditors.
Since Puerto Rico entered bankruptcy, its economic crisis has only been further deepened by Hurricanes Irma and Maria, a series of earthquakes and the coronavirus pandemic.
The restructuring plan will reduce the largest portion of the Puerto Rico government’s debt — some $33 billion — by about 80 percent. The deal will also save the government more than $50 billion in debt payments.
“Today begins a new chapter in PR’s history,” the oversight board that has overseen Puerto Rico’s finances since 2016 wrote on Twitter on Tuesday afternoon.
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By Patricia Mazzei
Jan. 18, 2022
Updated 5:27 p.m. ET
Read more: https://www.nytimes.com/2022/01/18/us/puerto-rico-bankruptcy.html