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Monthly Archives: September 2015

Puerto Rico Faces Serious Legal Challenges in Managing Debt

Puerto Rico Faces Serious Legal Challenges in Managing Debt

With some $72 billion in debt and little hope of a major financial turnaround, Puerto Rico has found itself in a precarious position. The county’s most recent response, the Debt Enforcement and Recovery Act of 2014, which created a de facto bankruptcy procedure that Puerto Rico could use to restructure its debt, was ruled unconstitutional… Read More…

First Circuit Rules Puerto Rico’s Recovery Act Unconstitutional

First Circuit Rules Puerto Rico’s Recovery Act Unconstitutional

A recent First Circuit ruling found the 2014 Puerto Rico Public Corporation Debt Enforcement and Recovery Act to be unconstitutional. Puerto Rican politicians passed the legislation to create a new restructuring process for the country’s distressed municipalities, hoping to secure the kind of protection granted to distressed cities through the American bankruptcy system. After the… Read More…

Filed Under: law

Big Banks Submit Living Wills to Regulators

Big Banks Submit Living Wills to Regulators

Some of the largest banks in the United States recently filed living wills intended to steer them through the bankruptcy process during a financial crisis. However, bankruptcy and restructuring experts argue that Congress needs to amend the Bankruptcy Code if the process is to work as planned. Lawmakers developed the 2010 Dodd-Frank Act to increase… Read More…