The Promesa Wolf Visits Abuelita

Back in 2017, when the Puerto Rico Oversight and Economic Stability Act (Promesa) was just a wolf pup, this journal delivered a conference on the Hill focusing on Title V—for the expediting of critical infrastructure—in the federal law. During that conclave, hosted by the Associated General Contractors of America-Puerto Rico chapter, former Detroit Emergency Manager Kevyn Orr foretold what to expect in Puerto Rico’s debt restructuring of $72 billion, which towered as the largest U.S. municipal bankruptcy at the time.
Orr explained that there would be plenty of kicking and screaming in the initial stages because of the excruciating pain involved in the process. In Detroit’s case, Orr played henchman without a junta while bankruptcy Judge Steven Rhodes cut debt in what some creditors have called a kangaroo court. The proceedings prompted Judge Rhodes to give really tight haircuts to creditor constituents, and the municipality to give away pricey waterfront real estate and valuable parking lots, coliseums and such to creditors who had liens in bond covenants that made those deals somewhat palatable. Todo el mundo no muy contento.
In Puerto Rico, the commonwealth’s debt was cut by $60 billion. However, the Financial Oversight and Management Board (FOMB), tasked to enforce the dicta of the federal law, seems unable to tame the Puerto Rico Electric Power Authority (Prepa). The bankrupt utility, saddled with $9 billion in debt, was allowed to run amok for decades—pensions climbed to a whopping $39 million monthly and generation assets, and transmission and distribution (T&D) were allowed to fall into disrepair.
To read the entire story subscribe now to our epaper at caribbeanbusiness. com
Related Posts
Latest News
-
Act 41 Legal Challenge Warned
FOMB Seeks to Halt Labor Changes; Governor Refuses As Puerto...
- Posted August 11, 2022
-
Global Matress Invest Millions In larger Facilities
Move to New Ponce Factory and Store Constructions Underway Global...
- Posted August 10, 2022
-
Startups Get a Makeover
Venture Capital Seen as an Alternative for Emerging Fintechs While...
- Posted August 10, 2022
-
Paradores and Small Inns Encouraged by Airbnb Growth
Study: Airbnb Contributes to the Creation of 24,000 Jobs Locally...
- Posted August 10, 2022
-
Civil Society and Gov’t Present Tools to Empower Citizens
New Online Platforms Address Social Issues, Provide Jobs Puerto Rico...
- Posted August 9, 2022
-
INTERNATIONAL EVENT HELD ON THE ISLAND
“The AIESEC Alumni Leadership Summit will offer a great opportunity...
- Posted August 8, 2022
-
HUB Advanced Networks, LLC has the first building in Puerto Rico to obtain TIER III certification by Uptime Institute
Press Release (August 5, 2022- San Juan, PR) – The...
- Posted August 5, 2022
-
Medplus Solutions celebrates 10 years Saving Lives
Innovation and continuous growth Expansion of specialized and more...
- May 18, 2022
-
Amazon Web Services Expands Operations in Puerto Rico
Local Office Will Offer Services to other Caribbean Islands...
- April 22, 2022
-
García Padilla: Rubio Is No Friend of Puerto Rico
Governor Says Rubio's Remarks Confirm he Works for 'Vultures'
- February 26, 2016
- 15