But I have one objection: many of those quoted in the article probably have conflicts of interest because they are lobbyists or consultants to the various parties. Journalists should ask and report these potential conflicts.
To those creditors, the draft financial plan is major threat to their leverage. The proposal would allow the control board to mediate negotiations between Puerto Rico’s government and creditors and if the board deemed it necessary, to facilitate a court sanctioned restructuring. Such a restructuring would apply to all of Puerto Rico’s debt—what creditors are calling Super Chapter 9. The draft also proposes a stay for all debt litigation upon enactment.The government faces a $422 million debt payment on May 1 and another $2 billion payment on July 1, and it is unclear whether it has the funds to pay either of them. That’s put increased pressure on Congress to come up with a solution. The Natural Resources Committee plans to hold a hearing on a final discussion draft the second week in April and proceed to a markup of the full legislation soon thereafter. The Senate is likely to move quickly as well.
Michael Kevane 