General Obligation Bondholders of Puerto Rico File Suit Over Debt Avoidance Legislation

General Obligation Bondholders of Puerto Rico File Suit Over Debt Avoidance Legislation



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WASHINGTON, June 21, 2016 /PRNewswire-HISPANIC PR WIRE/ — Today, certain entities owning Puerto Rico’s general obligation bonds brought suit in the U.S. District Court for the Southern District of New York, seeking to invalidate the Emergency Moratorium and Financial Rehabilitation Act hastily enacted by the Commonwealth of Puerto Rico.

Mark Stancil of Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, the plaintiffs’ counsel, said: “Governor Alejandro Garcia Padilla has willfully violated the first priority guaranteed to general obligation bonds by Puerto Rico’s Constitution and has flouted centuries-old federal constitutional protections for contract and property rights.  The Moratorium Act is transparently unlawful.”  

General Obligation Bondholders of Puerto Rico File Suit Over Debt Avoidance Legislation