Puerto Rico Governor Alejandro Garcia Padilla unveiled a bankruptcy-like process for some public corporations to restructure their debts yesterday in a fresh bid to shore up the U.S. territory's deteriorating finances, Reuters reported yesterday. The governor's proposed legislation, expected to pass the legislature soon, would apply to the semi-autonomous public authorities that manage Puerto Rico's infrastructure and are unable to pay their debts. It offers two options for adjusting debts: a seven-step voluntary restructuring process approved by creditors or a process overseen by the island's courts. The law would not apply to the territory's general obligations. Puerto Rico's 78 municipalities, Government Development Bank (GDB), retirement systems and some other authorities are also excluded. As a U.S. territory, Puerto Rico is not permitted to file for bankruptcy.
