Dealing with Puerto Ricos crushing debt has started to resemble a circular firing squad.
Simply put, the bankrupt island cant pay everything it owes, so creditors are taking aim at each other as they squabble over who will get whats left. But the debts size and the tangled process invented to rescue Puerto Rico mean theres no established rule book to shape what comes next.
Holders of general-obligation debt have declared their right to be paid first, owners of sales-tax bonds are squabbling with one another over who deserves priority, and theyre all up against the commonwealths leaders, who want the cash for essential services. Amid this melee, Puerto Ricos federal overseers will have to choose between paying U.S. hedge funds…
Read the full article at: https://www.bloomberg.com/news/articles/2017-05-11/puerto-rico-debt-donnybrook-kicks-off-with-squabble-over-default