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Puerto Rico's New Law Faces Bankruptcy Code Battle

Law360, New York (August 12, 2014, 10:07 AM EDT) -- The commonwealth of Puerto Rico and the Puerto Rico Electric Power Authority (PREPA) recently filed separate motions to dismiss the federal court complaint filed last month by some PREPA bondholders seeking to invalidate the recently enacted Puerto Rico Public Corporation Debt Enforcement and Recovery Act. As anticipated, the motions to dismiss assert that the plaintiffs lack standing and the claims lack ripeness because PREPA has not, to date, sought relief under the challenged legislation....

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