by Anon
Friday, Dec. 04, 2015 at 4:14 PM
The Supreme Court announced it will review a lower court decision blocking Puerto Rico from restructuring portions of its debt under the Puerto Rico Recovery Act.
The Supreme Court announced it will review a lower court decision blocking Puerto Rico from restructuring portions of its debt under the Puerto Rico Recovery Act. The act which passed through Puerto Rico's legislature in July 2014, allows some of its public companies to restructure their debt through a process based in the island's courts.
"Puerto Rico needs a solution to the debt crisis that prevents austerity and protects the vulnerable," said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network, "With Congress slow to act, courts in Puerto Rico could be a part of a solution."
In February, a US district court ruled the Recovery Act invalid on the grounds that US bankruptcy law pre-empts it. Puerto Rico is currently not eligible for bankruptcy protection under US Federal law.
Jubilee USA Network is an alliance of more than 75 US organizations and 400 faith communities working with 50 Jubilee global partners. Jubilee's mission is to build an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org