Puerto Rico governor announces historic bankruptcy filing in federal court


A free daily digest of the biggest news stories of the day - and the best features from our website
Thank you for signing up to TheWeek. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.
Puerto Rico Gov. Ricardo Rossello announced Wednesday that the territory is filing paperwork to move its debt crisis to a federal bankruptcy court, making it "the largest government to seek refuge from its creditors in United States history," The New York Times writes.
"We're going to protect our people," Rossello said. Negotiations with bondholders have failed to move forward, and creditors hit the territory with lawsuits looking to recuperate millions, including by claiming revenues generated by the island's Treasury Department, The Associated Press reports.
While Puerto Rico cannot seek Chapter 9 bankruptcy, it will utilize a similar debt restructuring process called PROMESA. The island has about $73 billion of bond debt.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Continue reading for free
We hope you're enjoying The Week's refreshingly open-minded journalism.
Subscribed to The Week? Register your account with the same email as your subscription.
Sign up to our 10 Things You Need to Know Today newsletter
A free daily digest of the biggest news stories of the day - and the best features from our website
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
What to know when filing a hurricane insurance claim
The Explainer A step-by-step to figure out what insurance will cover and what else you can do beyond filing a claim
By Becca Stanek Published
-
How fees impact your investment portfolio — and how to save on them
The Explainer Even seemingly small fees can take a big bite out of returns
By Becca Stanek Published
-
Enemy without
Cartoons
By The Week Staff Published
-
Elon Musk used Starlink, which saved Ukraine, to thwart a Ukrainian attack on Russia's Crimea fleet
Speed Read
By Peter Weber Published
-
Fitch downgrades US credit rating, citing 'repeated debt-limit political standoffs'
Speed Read
By Peter Weber Published
-
Bed Bath & Beyond relaunches online following bankruptcy
Speed Read
By Justin Klawans Published
-
San Francisco's iconic Anchor Brewing is closing after 127 years
Speed Read
By Peter Weber Published
-
Lawmakers say tax prep companies illegally shared taxpayer data with Meta and Google
Speed Read
By Theara Coleman Published
-
Microsoft wins FTC battle to acquire Activision Blizzard
Speed Read
By Theara Coleman Published
-
Tesla reports record quarter for sales
Speed Read
By Catherine Garcia Published
-
48 states sue telecom company over billions of robocalls
Speed Read
By Theara Coleman Published