Puerto Rico Teachers Fail to Halt Bankruptcy Exit During Appeal

A federal appeals court refused to block Puerto Rico from implementing its debt-cutting plan, clearing away a key obstacle to the Commonwealth’s ability to issue new debt and end its main bankruptcy case.

• In a short, one paragraph ruling, a three-judge panel rejected a request by a teacher’s union to halt Puerto Rico’s exit from bankruptcy while an appeal of the reorganization plan moves ahead
• The ruling is a victory for the Commonwealth and the federal oversight board, which has been planning to swap out the legacy debt with new restructured bonds by March 15
• The appeal is Federacion de ...