Puerto Rico Judge May Reject Debt Plan Without More Details (1)

The federal board restructuring Puerto Rico’s finances must provide more details to justify nullifying certain commonwealth laws, or the judge overseeing the island’s bankruptcy may reject a carefully negotiated plan to cut $33 billion in public debt, according to a court filing.

U.S. District Court Judge Laura Swain signaled in an order late Tuesday that she may refuse to approve the proposal to end Puerto Rico’s four-year-old bankruptcy, in part because there isn’t enough legal backup to support pre-empting local laws that boost pension benefits.

Puerto Rico’s financial oversight board has until Dec. 20 to file to the court ...