After years of stagnant economic conditions, the growth of government spending, and unsustainable public employee pension programs, Puerto Rico is poised to default on its debts unless some action is taken. Various proposals have been offered, from making Puerto Rico eligible to file Chapter 9, to a special debt composition, to a financial oversight board, or nothing at all, leading to a negotiation among all interested parties. A public policy concern has been raised regarding the potential for the Puerto Rico solution to become a template for states that are in financial distress due to underfunded pension mandates.
This Congressional Civil Justice Caucus Academy briefing provided the perspectives of experts in government financial restructuring both inside and outside of bankruptcy as they discussed the options available to Puerto Rico.
This informative lunchtime discussion featured:
Director, Federal Government Affairs, Deloitte Consulting LLPDavid A. Skeel
S. Samuel Arsht Professor of Corporate Law, University of Pennsylvania Law School
Stephen Spencer
Managing Director, Financial Restructuring Group, Houlihan Lokey
Moderator: Hon. Thomas B. Bennett (Ret.)
Partner, Bailey & Glasser LLP and Former Chief U.S. Bankruptcy Judge
CCJCA@gmu.edu