Puerto Rico Announces Huge, Historic Debt Restructuring

SAN JUAN, Puerto Rico (AP) -

Puerto Rico’s governor has announced a historic restructuring of a portion of the U.S. territory’s $70B debt through courts after negotiations with bondholders failed.

Gov. Ricardo Rossello said on Wednesday that a federal control board overseeing the island’s finances has agreed with his request to put the debts before a court. It’s a process similar to bankruptcy.

The island was hit with several lawsuits on Tuesday after a freeze on litigation that protected the government from lawsuits by creditors expired. The restructuring through courts will once again protect Puerto Rico from such lawsuits.