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Puerto Rico’s Record Bankruptcy Ending After Debt Plan Nod (1)

Jan. 19, 2022, 4:41 PM

Puerto Rico spent the last four years negotiating with bondholders on how to reduce its debt load. It now has to show them it can maintain fiscal responsibility.

The court overseeing Puerto Rico’s bankruptcy, the largest ever in the $4 trillion municipal-bond market, approved Tuesday a restructuring plan to slash $22 billion of bonds down to $7.4 billion and establish a reserve trust for its broke pension system. It’s the last major hurdle in order to exit court protection.

U.S. District Court Judge Laura Taylor Swain’s decision Tuesday marked a new beginning for Puerto Rico. Exiting bankruptcy will allow the ...