Puerto Rico’s Bankruptcy Fees Seen Hitting $1.6 Billion (1)

Fees and expenses related to the restructuring of Puerto Rico’s debt -- exacerbated by natural disasters and the pandemic -- are forecast to reach $1.6 billion by fiscal year 2026, cementing the island’s status as the most expensive municipal bankruptcy in US history.

“Uncertainty stemming from the series of recent natural disasters and the ongoing Covid-19 pandemic has resulted in an extended restructuring process contributing to the overall estimate,” the Puerto Rico Financial Oversight and Management Board, or FOMB, which is shepherding the island through bankruptcy, said in its annual report released late Sunday.

Prior to Puerto Rico, Detroit ...