Hedge Fund Makes Bid To Toss Puerto Rico Bankruptcy Case

Law360, New York (August 7, 2017, 7:28 PM EDT) -- Hedge fund Aurelius Capital Management, a significant stakeholder in Puerto Rico's historic insolvency proceedings, asked the court overseeing the territory's restructuring on Monday to dismiss the ongoing bankruptcy-like case because, it alleges, the members of the federal board representing the commonwealth were unconstitutionally appointed.

With the help of Gibson Dunn & Crutcher LLP attorney Theodore Olson, Aurelius is attempting to sink the commonwealth’s restructuring proceedings, initiated in May under Title III of the 2016 Puerto Rico Oversight, Management and Economic Stability Act, commonly known as PROMESA. The hedge fund, which holds $466 million in general obligation bonds issued by the territory,...

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