Puerto Rico, the biggest government in the U.S. to ever go bankrupt, will argue this week that it shouldn’t be treated like a broke business during the proceedings: Its residents, not creditors, should come first.Government lawyers will argue with bondholders Wednesday in federal court in San Juan over what ground rules should apply in the forthcoming legal battle at the heart of the $74 billion restructuring. Creditors want U.S. District Court Judge Laura Taylor Swain to declare that government agencies that issued or guaranteed debt bear the same legal responsibilities imposed on corporations in bankruptcy. That could mean putting creditors ahead of residents in the competition for limited public finances.
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