Puerto Rico’s public agencies should be able to seek bankruptcy, Jeb Bush, a probable presidential candidate, said yesterday during a visit to the U.S. territory, Bloomberg News reported yesterday. Commonwealth officials are promoting a bill that would enable some agencies to access chapter 9 under federal bankruptcy law. Junk-rated Puerto Rico, which has struggled to grow since 2006, and its agencies are struggling under $73 billion of debt. The island’s main electricity provider is in discussions with creditors and may ask them to take a loss on about $8.6 billion. Like U.S. states, Puerto Rico, a self-governing island of 3.5 million, cannot file for bankruptcy. Municipalities on the mainland can seek chapter 9, though commonwealth localities are unable to do so. Seeking to change that disparity, Pedro Pierluisi, Puerto Rico’s nonvoting congressional delegate, filed the legislation in February.
