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Spotlight On Puerto Rico’s Evolving Municipal Landscape

Law360, New York (March 4, 2015, 10:29 AM EST) -- As has been widely reported over the past several weeks, on Feb. 6, 2015, Judge Francisco A. Besosa of the U.S. District Court for the District of Puerto Rico struck down the Puerto Rico Public Corporation Debt Enforcement and Recovery Act (the “Recovery Act”) as unconstitutional on the basis that it is preempted by the federal Bankruptcy Code, and in doing so permanently enjoined the commonwealth of Puerto Rico and its officers, as well as their successors in office, from enforcing the Recovery Act.

Following the district court’s ruling (which is now on an expedited appeal to the U.S. Court of...

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