Puerto Rico Board Loses Bid to Limit Scope of Adviser Disclosures

Professionals working on Puerto Rico’s restructuring proceedings must disclose connections with both past and present creditors in order to get their fees approved, a federal judge ruled.

U.S. District Judge Laura Taylor Swain on Monday rejected the Puerto Rico Federal Oversight and Management Board’s proposed list of “material interested parties,” which omitted creditors whose claims “have not been expunged, settled, withdrawn, or otherwise resolved.”

The board, a federally appointed panel that has steered the island’s process of overhauling $123 billion worth of funded debt and pension liabilities, had proposed distinguishing between creditors with “active” and “inactive” claims.

Swain’s ruling provides ...