Sotomayor Helps Puerto Rico Argue Its Bankruptcy Case

Before Tuesday, I’d have said that Puerto Rico had no chance to win its legal fight to let its municipalities and utilities declare bankruptcy. That's how the island hopes to resolve its overwhelming debt problems, but the federal bankruptcy code says that it can't.
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Puerto Rico filing says govt. likely to cut services or default on debt before year's end

Puerto Rico's government will likely have to cut back on public services or default on debts before the end of the year because it is running out of cash, the Government Development Bank said in a financial filing. Putting numbers to a warning this summer from Gov. Alejandro Garcia Padilla, the filing late Friday said the U.S. territory had a $370 million overdraft as of Sept. 30 and burned through a $400 million emergency loan from a group of public corporations to keep government operating. It also cut revenue estimates for the current fiscal year by $355 million because of weaker than expected collections.


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Puerto Rico: No money available to make $58M bond payment

Puerto Rico's government said Friday it would not make a $58 million bond payment due on the weekend and warned that the general fund will run out of liquidity by November if no action is taken.


Gubernatorial Chief of Staff Victor Suarez said at a news conference that the island's Public Finance Corporation could not meet the payment due Saturday.
"We don't have the money," he said, adding that the government still hopes to reach an agreement with creditors on renegotiating its debts. Gov. Alejandro Garcia Padilla warned several weeks ago that the government and state agencies cannot repay the $72 billion in public debt that hangs over the U.S. territory, which is struggling with a nearly decade-long economic slump.


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Progressive Paradise Lost

It’s a progressive paradise.
Public employees get 30 vacation days a year. Anyone who works over eight hours in a day gets paid time-and-a-half. Employees have strong rights.
The minimum wage is high: 77 percent of the median wage.Environmental regulations are settled beyond the pressure of local economic interests. The forests and mountains are pristine destinations for ecotourism.


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Puerto Rico says it cannot pay its debt, setting off potential crisis in the U.S.

The governor of Puerto Rico has decided that the island cannot pay back more than $70 billion in debt, setting up an unprecedented financial crisis that could rock the municipal bond market and lead to higher borrowing costs for governments across the United States.


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Puerto Rico officials: Our government is likely to shut down and it will be devastating

Puerto Rico's top finance officials said the government of the US territory will most likely shut down in three months because of a looming liquidity crisis, and they warned of a devastating impact on the island's economy.
In a letter to leading lawmakers, including Gov. Alejandro Padilla, the officials said a financing deal that could potentially salvage the government's finances looked unlikely to succeed. It warned of laying off government employees and reducing public services.
"A government shutdown is very probable in the next three months due to the absence of liquidity to operate," the officials said. "The likelihood of completing a market transaction to finance the government's operations and keep the government open is currently remote."


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