Puerto Rico Pension Costs Hound Final Steps in Bankruptcy Case

Disagreements over public worker pensions in Puerto Rico continue to threaten a restructuring plan that would ease $33 billion of the island’s debt just as the judge overseeing its bankruptcy case hears final arguments.

A lawyer representing the congressionally appointed board overseeing the island’s finances said in court Monday that local laws, if enforced, would boost public-worker benefits and increase Puerto Rico’s expenses by an estimated $5 billion, too much for the plan to work.

“Quite possibly the plan wouldn’t be feasible if these statutes were ever enforced,” Martin Bienenstock, partner at Proskauer Rose, said.

U.S. District Court ...