By: Economic & Finance Report
Puerto Rico bondholders attained a huge legal win in Puerto Rico Supreme Court. The case involved bondholders to follow an unconstitutional Puerto Rico restructuring law. The law would have required the bondholders to accept restructuring law guidelines, as Puerto Rico figures ways to reduce their financial debt.
The bondholders in the case, Investment funds from OppenheimerFunds Inc, and Franklin Resources Inc, hold 1.5 billion dollars worth in Puerto Rico municipal bonds. A federal judge in San Juan, sided with the plaintiffs (bondholders) indicating that US Constitution and the federal bankruptcy law takes precedence over Puerto Rico’s restructuring law.
As of press time and of the current ruling of the case, the Puerto Rico government has stated that they were looking into the decision of the case and that they would be deciding what action to take on the ruling.
-SB