Puerto Rico bondholders have reason to be optimistic about overturning the island's debt payment moratorium in court, based on rulings by the judge handling most of the litigation, Bond Buyer reported today. "If you're reading tea leaves there seems to be an indication that the court may not agree with the moratorium," said James Spiotto, managing director at Chapman Strategic Advisors. Nearly all the Puerto Rico debt cases are being heard in the U.S. District Court for the District of Puerto Rico. The court is assigning all the cases to Judge Francisco Besosa, who is currently handling at least 11 of them. Judge Besosa issued a ruling last week that opens the door to declaring Puerto Rico's moratorium unconstitutional, Puerto Rico attorney John Mudd said. Read more.
For more news and analysis of Puerto Rico's debt crisis, be sure to visit ABI's "Puerto Rico in Distress" webpage.
