Bankruptcy Law News

Puerto Rico Board Upheld by Top Court in Defeat for Bondholders

June 1, 2020, 5:03 PM

The U.S. Supreme Court upheld the oversight board responsible for resolving Puerto Rico’s debt crisis, rejecting a bondholder challenge and bolstering the panel’s efforts to pull the island out of its record bankruptcy.

In a unanimous decision Monday, the Supreme Court said the board was appointed constitutionally, dismissing contentions that members needed to be nominated by the president and confirmed by the Senate.

A ruling against the board would have meant more upheaval for a U.S. territory that has been pounded by a hurricane in 2017 and earthquakes and the coronavirus outbreak this year. The bondholders, led by Aurelius Investment...

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