Puerto Rico: Supreme Court to consider recovery act constitutionality

By Caroline Salls

Pittsburgh, Dec. 4 – The Government Development Bank for Puerto Rico (GDB) said the Supreme Court will accept a Commonwealth of Puerto Rico and GDB case regarding the constitutionality of the Puerto Rico Public Corporation Debt Enforcement and Recovery Act.

“The Recovery Act was designed to provide a structured process for Puerto Rico’s government entities and their creditors to restructure the debt of those entities in an orderly fashion,” GDB president Melba Acosta Febo said in a news release.

“The lack of a final resolution to the Puerto Rico Electric Power Authority negotiations, which have been delayed by the unyielding attitude of certain of its creditors, demonstrates the importance of a mechanism to compel stakeholders to engage in good faith negotiations.

“This mechanism, which we are also requesting from Congress, is essential for Puerto Rico to resume the road to economic and fiscal recovery.”

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