A federal appeals court Feb. 15 threw out the process under which an oversight board was appointed to direct the restructuring of Puerto Rico’s public debt.
The decision is only a partial victory for creditors since the U.S. Court of Appeals for the First Circuit ruled the constitutional flaw doesn’t require dismissal of the $124 billion restructuring cases pending since May 2017 or invalidate what the board has done to date.
The court ordered a 90-day stay, during which the federal government can either validate the current board appointments or reconstitute the board with nominees chosen by President Trump and ...
