Blumenthal Statement on Confirmation That Puerto Rico Will Default on Portion of Debt Obligations Due January 4

(Hartford, CT) – U.S. Senator Richard Blumenthal (D-Conn.) today released the following statement after top officials from Puerto Rico confirmed that the commonwealth will default on a portion of the nearly $1 billion in debt obligations due to its bondholders on January 4.

“With Puerto Rico now on the verge of defaulting on tax revenue-backed bonds, the island is open to messy, costly, and completely avoidable lawsuits. Today’s announcement is just the latest reminder that Puerto Rico has neither the money to pay off its creditors nor access to an orderly process for restructuring its debt. Congress cannot continue to bury its head in the sand while 3.5 million U.S. citizens in Puerto Rico suffer – we must act now.”

This summer, Blumenthal introduced the Puerto Rico Chapter 9 Uniformity Act which would address the growing fiscal crisis by granting Puerto Rico the authority to allow its municipalities and public utilities to restructure their debts under the supervision of a bankruptcy court, authority which is already currently granted to all U.S. states.

###