Former Detroit Bankruptcy Judge Steven Rhodes said that Puerto Rico needs to be put on life support and the way to do it is through bankruptcy, Bond Buyer reported today. Rhodes also called for a central control person or board, preferably designated by the federal government, to spearhead the proceedings in place of the island's governor and legislature. He said Puerto Rico's struggles with unpayable bond debt and unfunded pension liabilities closely resemble those of Detroit, where Michigan Gov. Rick Snyder appointed Kevyn Orr to serve as an emergency manager for the city throughout the bankruptcy process. "In Detroit, we contracted democracy to a significant extent. When it was over, we handed it back to [city officials] and told them it was their responsibility to make it work," Rhodes said. "That is what I advocate for Puerto Rico." Read more.
Judge Rhodes is one of the speakers participating in The Hill’s policy discussion this morning titled “Puerto Rico’s Fiscal Future: What’s Next for America’s Largest Territory?”
For more news and analysis on Puerto Rico’s debt crisis, be sure to visit ABI’s “Puerto Rico in Distress” webpage.
