A private sector coalition of over 20 trade associations is speaking with a single voice and asking Congress to grant Puerto Rico the right to allow its public corporations access to protections under chapter 9 of the U.S. Bankruptcy Code, according to a commentary on the Huffington Post on Friday. From a business perspective, the commentary says that chapter 9 is part of the solution to Puerto Rico's complicated debt and liquidity crisis. The alternative — doing nothing and watching bondholders subject Puerto Rico to years of litigation and chaos — would be a disaster for a business community that thrives on predictability and order. If subjected to a long and disorderly process, the commentary argues that this unsustainable burden would leave Puerto Rico with little chance to grow its own economy. Chapter 9 would provide an orderly legal process — guided by a federal judge — to restructure what its public corporations owe and give our island the chance to fight for its future.
