More Puerto Rico Agencies Enter Bankruptcy

Andrew Scurria – May 22, 2017

The federal board overseeing Puerto Rico’s financial rehabilitation is enlarging the U.S. territory’s court-supervised bankruptcy, placing its nearly depleted pension system and its transportation agency under court protection.

The Employees Retirement System, known as ERS, and the Highways and Transportation Authority, known as HTA, entered a debt-restructuring process that amounts to municipal bankruptcy Monday in the federal court in San Juan.

Those two systems are now under a federal debt-adjustment law known as Title III alongside the Puerto Rico government and its sales-tax bond issuer, known as Cofina . U.S. District Judge Laura Swain Taylor, who is presiding over the cases, held the first court hearing on the government’s case last week.