The lack of transparency and financial disclosures in the Puerto Rico bankruptcy process have been a continual problem on the island, according to a commentary in the Orlando Sentinel. Congress is finally taking action to correct a long-exploited loophole in the PROMESA law that allows companies consulting on the Puerto Rican bankruptcy to forgo disclosures traditionally required in bankruptcy proceedings. Legislation advancing through Congress, the Puerto Rico Recovery Accuracy in Disclosures Act (PRRADA), is designed to create transparency in the Puerto Rican bankruptcy process and bring disclosure requirements on the island up to par with that of the rest of the country. The bill was recently voted favorably out of the House Judiciary Committee and is on its way to facing a vote before the full House of Representatives. Read the full commentary.
*The views expressed in this commentary are from the author/publication cited, are meant for informative purposes only, and are not an official position of ABI.
In related news, President Trump, who has long held up federal aid to help Puerto Rico recover from back-to-back hurricanes in 2017, announced on Friday that he was finally releasing $13 billion to rebuild its electrical grid and repair schools, the New York Times reported. For three years, Trump has been at odds with Puerto Rico, harshly attacking its leadership and blocking or placing restrictions on assistance after Hurricanes Irma and Maria ravaged the island, arguing that the island territory had received too much money already. At one point, he even discussed with aides the prospect of selling Puerto Rico rather than be saddled with the cost of recovery. But with Puerto Ricans who relocated to Florida now a significant voting bloc in one of the most critical states in the fall campaign, the president abruptly pivoted and presented himself as a friend to the island and its people. Read more.
