House Bill Would Open Up Ch. 9 To Puerto Rico Public Cos.

August 1, 2014 – In The News
Michael A. Sweet was quoted in the Law360 article, “House Bill Would Open Up Ch. 9 To Puerto Rico Public Cos.” Full text can be found in the August 1, 2014, issue, but a synopsis is below.

Puerto Rico’s debt-burdened public corporations would be able to save themselves from the bankruptcy process made available to U.S. municipalities under a bill passed on Thursday in the U.S. House of Representatives that would replace the commonwealth's controversial bankruptcy-like debt adjustment law.

Michael Sweet comments on this matter, saying, “The Bankruptcy Code does apply in Puerto Rico to individuals and companies there, so it isn’t beyond the realm of possibility that Congress might decide that it could apply to municipalities in Puerto Rico as well. However, that would be new development that we certainly have never seen before.”