Loading ...Puerto Rico’s attempt at passing a law that would enable the US territory to restructure debts has been struck down by the US Supreme court.
Excluded from being able to use Chapter 9, Puerto Rico passed the Recovery Act in 2014 which would allow the territory to put public entities into bankruptcy, thus forcing haircuts to creditors such as Franklin Advisors and OppenheimerFunds. However in a very definitive 5-2 ruling handed down this morning from the US Supreme Court, the law was struck down, providing at least temporary relief for bondholders.