Judge hears major Puerto Rico debt restructuring case
SAN JUAN, Puerto Rico (AP) — Dozens of protesters are crowding outside a federal courthouse in Puerto Rico as a judge prepares to hear a major debt restructuring case that critics say will only further indebt the U.S. territory if approved.
Wednesday’s hearing involves more than $17 billion worth of debt backed by sales-tax bonds that the government issued. It represents nearly a third of Puerto Rico’s overall bonded debt. The restructuring plan was recently approved after more than 8,000 bondholders voted on it, according to a federal control board that oversees the island’s finances. The board supports the plan and calls it key to Puerto Rico’s recovery.
Economist Martin Guzman warned that Puerto Rico would pay $32 billion in the next 40 years if the plan is approved.