As political chaos swirled outside, a federal court judge overseeing Puerto Rico’s bankruptcy in San Juan sought to impose order on dozens of legal fights that are adding to the island’s financial turmoil, Bloomberg reported. U.S. District Court Judge Laura Taylor Swain told bondholders, government officials and a federal oversight board to hold off on pressing their claims for four months, and instead attend mediation sessions. The goal is to set up a process that would resolve the array of lawsuits, which are hobbling efforts to unwind billions of dollars of debt that taxpayers can’t afford anymore. Under Judge Swain’s order, the court fights will be suspended for 120 days. That includes attacks by creditors on government proposals that could reduce their payouts, and attempts by federal overseers to claw back interest that bondholders already received. The case is The Commonwealth of Puerto Rico, et al., 17-3283, U.S. Bankruptcy Court, District of Puerto Rico (San Juan).
