A U.S. Appeals Court yesterday gave Puerto Rico’s federally created financial oversight board another 60 days to allow for the constitutional reappointment of its members by President Donald Trump and the Senate, Reuters reported. The board had faced a May 16 deadline set by the Boston-based First Circuit court on Feb. 15 to be validly reappointed or replaced after creditors of the bankrupt U.S. commonwealth successfully challenged members’ appointments on constitutional grounds. Last week, the White House announced the U.S. Senate will be asked to confirm the board’s current seven members. The appeals court’s order sets a July 15 deadline for that process to be completed. Both moves allow the board to continue to restructure Puerto Rico’s roughly $120 billion of debt and pension obligations under a form of bankruptcy filed two years ago in federal court. However, the board’s executive director, Natalie Jaresko, told reporters yesterday that the two-month extension may not be sufficient as the Senate confirmation process could take longer. The appeals court denied the board’s request to stay its ruling in the case until there is a final decision by the U.S. Supreme Court. The board last month petitioned the High Court over the ruling, which determined the board had been unconstitutionally appointed because its members are principal U.S. officers and should have been selected by the president “with the advice and consent of the Senate.”
