A fight between Puerto Rico’s bankrupt power utility and its creditors over who can stake a claim to its revenue is likely to have implications beyond the commonwealth, affecting billions of debt in the broader $4 trillion municipal-bond market.
Holders of Puerto Rico Electric Power Authority debt say they have a right to the utility’s future revenue. Prepa, as the agency is called, believes investors only have a claim to about $16 million in a sinking fund held by a bond trustee, just a sliver of the $9 billion the utility owes.
US District Court Judge Laura Taylor Swain is ...
