The move sends Puerto Rico into uncharted territory. President Trump recently wrote a Twitter post saying there should be no “bailout” for Puerto Rico. Puerto Rico has roughly $120 billion of bond debt and unfunded pension obligations to restructure, which dwarfs the second-largest similar episode. Advertisement Continue reading the main storyThe island’s case will not be formally called a bankruptcy, since Puerto Rico is barred from using Chapter 9, the bankruptcy route normally used by insolvent local governments. Instead, the governor of Puerto Rico, Ricardo Rosselló, petitioned for relief under Title III of a new federal law for insolvent territorial governments, called Promesa.

Source: New York Times May 03, 2017 15:10 UTC