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Puerto Rico Wins Bankruptcy Deal Ahead of Pension-Cut Fight

Michelle Kaske and Steven Church ( Bloomberg) report on a breakthrough in the Puerto Rican government’s bankruptcy struggle that removes one roadblock to the current plan for slashing $35 billion of its remaining debt. Puerto Rico’s financial oversight board struck a deal with the main group of the island’s unsecured creditors, a breakthrough in the government’s bankruptcy that removes one roadblock to the current plan for slashing $35 billion of its remaining debt. The deal, struck on the eve of a court hearing Tuesday, may also put pressure on the remaining bond insurers that are among the biggest creditors still fighting the proposed debt-restructuring plan.

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