"We have reached this decision because it protects the best interests of the people of Puerto Rico," said Gov. PUERTO RICO HIT WITH 1ST LAWSUIT FROM BONDHOLDERSPuerto Rico is barred from traditional bankruptcy because it is a U.S. territory. The case was filed under Title III of the PROMESA law, which allows an in-court debt restructuring process akin to U.S. bankruptcy protection. In addition to its debt, Puerto Rico is facing a 45 percent poverty rate, a shrinking population and unemployment more than twice the U.S. average. Puerto Rico and its general obligation bondholders, whose $18 billion of debt is backed by the island's constitution, were negotiating until the last minute.

Source: Fox News May 03, 2017 15:10 UTC