Supreme Court Says No, Puerto Rico Can't Fix A Big Hole In Bankruptcy Law
WASHINGTON -- The Supreme Court ruled Monday that Puerto Rico does not have the authority to enact its own bankruptcy laws, a decision that adds greater urgency to passing congressional legislation aimed at helping the island restructure its $70 billion debt.
In a 5-2 ruling, the court struck down a 2014 Puerto Rico law that would have allowed the island's public entities -- including utility companies -- to declare bankruptcy and seek court-supervised debt restructuring from their creditors.
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