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

Dec. 15, 2021, 2:59 PM

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 ...