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Puerto Rico Oversight Board Appointments Improper, Court Rules (1)

Feb. 15, 2019, 11:06 PMUpdated: Feb. 15, 2019, 11:32 PM

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 ...