The U.S. Supreme Court on June 13 ruled (5-2) in the case of Puerto Rico v. Franklin California Tax-Free Trust (No. 15-233) that Puerto Rico’s Recovery Act is preempted by § 903 of chapter 9 of the Bankruptcy Code — even though Puerto Rico is explicitly excluded from authorizing its municipalities to seek chapter 9 eligibility. Watch ABI Editor-at-Large Bill Rochelle discuss the implications of the high court's ruling with Prof. Stephen Lubben, the Harvey Washington Wiley Chair in Corporate Governance & Business Ethics at Seton Hall University.
