Puerto Rico Reorg Advisers’ Disclosure Bill Passed by Congress

Congress passed a bill requiring attorneys and other advisers to disclose conflict-of-interest ties before getting paid by the Puerto Rico reorganization estate.

The Puerto Rico Recovery Accuracy in Disclosures Act (PRRADA, H.R. 1192) now heads to President Biden’s desk for his signature, after the House of Representatives passed it Wednesday with a voice vote. The Senate approved it unanimously in December 2021.

PRRADA requires restructuring professionals, including attorneys, accountants, and financial advisers, to fully disclose any connections with Puerto Rico’s reorganizing municipalities or government agencies, their creditors, or other parties in interest before the court can approve a request ...