Puerto Rico announces historic debt restructuring in court

(Source: CNN)

SAN JUAN, Puerto Rico (AP) – Puerto Rico’s governor has announced a historic restructuring of a portion of the U.S. territory’s $70B debt through courts after negotiations with bondholders failed.

Gov. Ricardo Rossello said Wednesday that a federal control board overseeing the island’s finances has agreed with his request to put the debts before a court. It’s a process similar to bankruptcy.

The island was hit with several lawsuits on Tuesday after a freeze on litigation that protected the government from lawsuits by creditors expired. The restructuring through courts will once again protect Puerto Rico from such lawsuits.

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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