{"id":43142,"date":"2015-10-22T20:31:00","date_gmt":"2015-10-22T22:34:00","guid":{"rendered":"http:\/\/hispanicprwire.com\/u-s-treasury-pushes-unprecedented-bankruptcy-plan-for-puerto-rico\/"},"modified":"2015-10-22T20:34:04","modified_gmt":"2015-10-23T00:34:04","slug":"el-tesoro-de-los-estados-unidos-empuja-un-plan-de-bancarrota-sin-precedentes-para-puerto-rico","status":"publish","type":"post","link":"https:\/\/hispanicprwire.com\/en\/el-tesoro-de-los-estados-unidos-empuja-un-plan-de-bancarrota-sin-precedentes-para-puerto-rico\/","title":{"rendered":"U.S. Treasury Pushes Unprecedented Bankruptcy Plan for Puerto Rico"},"content":{"rendered":"<p><\/p>\n<style type=\"text\/css\"><![CDATA[\n\/* Style Definitions *\/\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n]]><\/style>\n<div class=\"xn-content\">\n<p><i><span class=\"xn-location\">Puerto Rico<\/span> Governor Garcia Padilla Admits that Some Debt May Violate Puerto Rican Constitution<\/i> <\/p>\n<p><span class=\"xn-location\">WASHINGTON<\/span>, <span class=\"xn-chron\">Oct. 22, 2015<\/span> \/PRNewswire-HISPANIC PR WIRE\/ &#8212; At today&#8217;s Senate Energy and Natural Resources Committee hearing, Puerto Rican Governor <span class=\"xn-person\">Alejandro Garcia Padilla<\/span> and <span class=\"xn-person\">Antonio Weiss<\/span> of the U.S. Treasury Department asked Congress for unprecedented bankruptcy measures for <span class=\"xn-location\">Puerto Rico<\/span>, including allowing <span class=\"xn-location\">Puerto Rico<\/span> to walk away from its Constitutional debt.\u00a0 <\/p>\n<p>As the <i><span class=\"xn-org\">New York Times<\/span><\/i> <a href=\"http:\/\/www.nytimes.com\/2015\/10\/22\/business\/dealbook\/obama-administration-draws-up-plan-to-help-puerto-rico-with-debt.html?_r=0\" target=\"_blank\" rel=\"nofollow\">reported<\/a> yesterday, no state has the ability to restructure Constitutional, or full faith and credit debt, and that if <span class=\"xn-location\">Puerto Rico<\/span> were granted this, other states like <span class=\"xn-location\">Illinois<\/span> might soon follow.<\/p>\n<p>&#8220;Super Chapter 9&#8221;, if enacted, is expected to roil municipal debt markets and raise the costs of borrowing for states and municipalities across the country.\u00a0\u00a0\u00a0 <\/p>\n<p><b><span class=\"xn-person\">Henry Chanin<\/span><\/b>, a Puerto Rican bondholder, retired educator, and member of the Main Street Bondholder coalition said, <\/p>\n<p><i>&#8220;By giving <span class=\"xn-location\">Puerto Rico<\/span> the authority to completely disregard the rule of law and void Constitutional guarantees to bondholders, Congress would be establishing a precedent that would destroy the municipal market. This would put the retirement savings of millions across the country at risk.&#8221;<\/i><\/p>\n<p>In a surprise move, <span class=\"xn-person\">Garcia Padilla<\/span> admitted under pressure from Senators that a portion of the Island&#8217;s debt may actually have been issued in violation of the Commonwealth&#8217;s Constitution. The admission makes clear the distinct nature of <span class=\"xn-location\">Puerto Rico&#8217;s<\/span> different tranches of debt, some of which is protected by Constitutional guarantee. He also acknowledged the widespread, devastating impact that his debt avoidance measures will have on the Island, conceding that 25-30% of the island&#8217;s bondholders are Puerto Rican small investors. <\/p>\n<p><b>Dr. <span class=\"xn-person\">Elias Gutierrez<\/span><\/b>, a Puerto Rican bondholder, professor of economics, and member of the Main Street Bondholder coalition said,<\/p>\n<p><i>&#8220;Super Chapter 9 would be de facto amendment of the Puerto Rican Constitution by Congressional legislative fiat without the participation of the Puerto Rican people. It is shameful the Obama Administration and Governor <span class=\"xn-person\">Garcia Padilla<\/span> would endorse the violation of the Puerto Rican Constitution.&#8221;<\/i><\/p>\n<p>Key Facts:<\/p>\n<ul type=\"disc\">\n<li>The Administration&#8217;s unprecedented proposal, so-called &#8220;Super Chapter 9&#8221;, would restructure all of <span class=\"xn-location\">Puerto Rico&#8217;s<\/span> debt, including its Constitutional debt, and is widely expected to disrupt U.S. municipal debt markets \u2013 raising the cost of borrowing for states and municipalities across the country.\u00a0 <\/li>\n<li><span class=\"xn-person\">Jim Millstein<\/span>, <span class=\"xn-location\">Puerto Rico&#8217;s<\/span> chief restructuring advisor, has aggressively pushed for Super Chapter 9, ignoring bi-partisan interest in Congress for a deal that would bring desperately needed fiscal reform combined with an orderly restructuring mechanism for <span class=\"xn-location\">Puerto Rico&#8217;s<\/span> non-Constitutional debt. Millstein has been criticized for profiting from his business dealings around <span class=\"xn-location\">Puerto Rico&#8217;s<\/span> settlement with PREPA&#8217;s bondholders, yet continues to advise the Commonwealth. <\/li>\n<li>&#8220;Super Chapter 9&#8221; is without precedent, and would create a precedent for other states to discharge their Constitutional or &#8220;full faith and credit&#8221; debt. This reckless action would put every retirement account in America at risk. <\/li>\n<\/ul>\n<p><a href=\"http:\/\/mainstreetbondholders.org\/\" target=\"_blank\" rel=\"nofollow\"><b>Main Street Bondholders Coalition<\/b><\/a>\u00a0is a project of the 60 Plus Association, and is comprised of small bondholders from across America who are committed to a policy process that returns <span class=\"xn-location\">Puerto Rico<\/span> to sound financial management, respect for the rule of law, and the protection of their retirement savings.<\/p>\n<\/div>\n<p> <\/p>","protected":false},"excerpt":{"rendered":"<div class=\"xn-content\">\n<p><i><span class=\"xn-location\">Puerto Rico<\/span> Governor Garcia Padilla Admits that Some Debt May Violate Puerto Rican Constitution<\/i> <\/p>\n<p><span class=\"xn-location\">WASHINGTON<\/span>, <span class=\"xn-chron\">Oct. 22, 2015<\/span> \/PRNewswire-HISPANIC PR WIRE\/ &#8212; At today&#8217;s Senate Energy and Natural Resources Committee hearing, Puerto Rican Governor <span class=\"xn-person\">Alejandro Garcia Padilla<\/span> and <span class=\"xn-person\">Antonio Weiss<\/span> of the U.S. Treasury Department asked Congress for unprecedented bankruptcy measures for &lt;span&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-43142","post","type-post","status-publish","format-standard","hentry","category-gobierno-y-politica"],"acf":[],"_links":{"self":[{"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/posts\/43142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/comments?post=43142"}],"version-history":[{"count":0,"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/posts\/43142\/revisions"}],"wp:attachment":[{"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/media?parent=43142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/categories?post=43142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hispanicprwire.com\/en\/wp-json\/wp\/v2\/tags?post=43142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}