Related topics

Puerto Rico seeks dismissal of US funds’ lawsuit

July 22, 2014

SAN JUAN, Puerto Rico (AP) — Puerto Rico’s justice secretary has asked a judge to dismiss a lawsuit filed by two U.S. investment funds seeking to undo a new law that would allow some of the island’s public corporations to restructure their debt.

Cesar Miranda says the law does not interfere with federal bankruptcy laws, as the suit claims. He said Monday that public agencies of the U.S. territory cannot file for bankruptcy under U.S. law, and that the suit is premature because the law has not yet been put to use.

The Templeton and Oppenheimer investment funds filed the lawsuit on June 28.

The law allows certain public corporations to work with creditors to restructure their debt. Such corporations account for about 40 percent of the island’s $73 billion in public debt.

Update hourly