Schumer bill would allow Puerto Rico to file for bankruptcy
U.S. Senator Charles Schumer (D-New York) said he has introduced legislation aimed at helping Puerto Rico out of its fiscal mess by allowing the island to seek bankruptcy protection in U.S. courts, something it is currently prohibited from doing.
Together with U.S. Senator Richard Blumenthal (D-Conn.) Schumer introduced the Puerto Rico Chapter 9 Uniformity Act on Wednesday, legislation that would grant Puerto Rico the authority to allow its municipalities and public utilities to readjust their debts under the supervision of a bankruptcy court.
The Puerto Rico Chapter 9 Uniformity Act would provide Puerto Rico with the same authority granted to all U.S. states that enables its municipalities and public utilities to restructure their debt, according to Schumer.