Puerto Rico is considering suspending debt-service payments for five years, a lead lawyer for the commonwealth’s federal oversight board said during a court hearing.
The bankrupt U.S. territory may skip the principal and interest payments as part of its plan of adjustment, Martin Bienenstock, a partner at Proskauer Rose LLP, said Wednesday in court. The firm is representing the federal panel in Puerto Rico’s bankruptcy.
It’s the first time the commonwealth or one of its representatives has publicly stated a timeframe for how long the island will need to skip debt payments. After Bienenstock gave the potential five-year period, lawyers in the courtroom asked U.S. Bankruptcy Judge Laura Taylor Swain to have Bienenstock verify that possible suspension.
This article was provided by Bloomberg News.