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Title: Board sues Puerto Rico governor for rejecting furloughs
Source: https://www.yahoo.com/news/m/dc576161-e16b-3db2-b79b-03e6df8
URL Source: https://www.yahoo.com/news/m/dc5761 ... ss_board-sues-puerto-rico.html
Published: Aug 29, 2017
Author: na
Post Date: 2017-08-29 13:42:32 by XDMAR
Keywords: None
Views: 693
Comments: 7

A federal control board overseeing Puerto Rico's crisis-ridden finances sued the island's governor on Monday for refusing to impose furloughs and take other measures it says are needed to save money. The lawsuit further raises tensions between Gov. Ricardo Rossello and the board, which is demanding public employee furloughs and a pension reform as the U.S. territory tries to restructure a portion of its $74 billion public debt load. The board also requested an injunction to prohibit the governor from refusing to comply. "While our preference was to avoid this step, we believe it is a necessary measure to keep Puerto Rico on track with its commitments to reduce spending and build stable foundations for its economic future," said Natalie Jaresko, the board's executive director

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Begin Trace Mode for Comment # 3.

#1. To: XDMAR (#0)

The folks who lent money took risks. They made bad bets. They should lose their investments.

Vicomte13  posted on  2017-08-29   15:05:03 ET  Reply   Untrace   Trace   Private Reply  


#2. To: Vicomte13, XDMAR (#1)

The folks who lent money took risks. They made bad bets. They should lose their investments.

Loans were given with the knowledge that Bankruptcy law at Chapter 9 does not permit Puerto Rico, or any of its municipalities, to be a debtor under Chapter 9. Absent a change to the law, Puerto Rico should not be able to obtain any bankruptcy protection.

Bankruptcy Chapter 9, 109(c), Who May Be A Debtor,

http://law.justia.com/codes/us/2015/title-11/chapter-1/sec.-109/

(c) An entity may be a debtor under chapter 9 of this title if and only if such entity—

(1) is a municipality;

(2) is specifically authorized, in its capacity as a municipality or by name, to be a debtor under such chapter by State law, or by a governmental officer or organization empowered by State law to authorize such entity to be a debtor under such chapter;

(3) is insolvent;

(4) desires to effect a plan to adjust such debts; and

(5)(A) has obtained the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter;

(B) has negotiated in good faith with creditors and has failed to obtain the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter;

(C) is unable to negotiate with creditors because such negotiation is impracticable; or

(D) reasonably believes that a creditor may attempt to obtain a transfer that is avoidable under section 547 of this title.

nolu chan  posted on  2017-08-30   0:00:27 ET  Reply   Untrace   Trace   Private Reply  


#3. To: nolu chan (#2)

I'm not suggesting bankruptcy protection. Simple default.

Vicomte13  posted on  2017-08-30   8:02:16 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 3.

#4. To: Vicomte13 (#3)

I'm not suggesting bankruptcy protection. Simple default.

Without bankruptcy protection, would the debtors have to dissolve assets until creditors are paid or assets are all gone? The Puerto Rican government might find itself broke and homeless.

nolu chan  posted on  2017-08-30 15:15:35 ET  Reply   Untrace   Trace   Private Reply  


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