Clinton Says Puerto Rico Should Have Access to U.S. Bankruptcy Laws

U.S. Democratic presidential candidate Hillary Clinton said Tuesday that Puerto Rico's public entities should be able to use U.S. bankruptcy laws to restructure some $72 billion in debt.
Like U.S. states, Puerto Rico, a commonwealth, cannot file for bankruptcy protection. Unlike U.S. states, Puerto Rico's public entities, including municipalities, are not covered by U.S. Chapter 9 bankruptcy laws.
Puerto Rico's non-voting delegate in the U.S. Congress has called for legislation that would allow Puerto Rico to access the same bankruptcy laws available to other municipalities, as has Puerto Rico's Governor Alejandro Garcia Padilla.
The U.S. Court of Appeals for the First Circuit late Monday affirmed a lower court decision to strike down Puerto Rican legislation aimed at granting local municipalities the right to enter bankruptcy, but said excluding the U.S. territory's public entities from federal bankruptcy law was unconstitutional.



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