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Governor of Puerto Rico Warns of Looming Default Without Bankruptcy Plan | Tony Seruga
Dec
16

Governor of Puerto Rico Warns of Looming Default Without Bankruptcy Plan

By

A man is reflected in a mirror while watching Puerto Rico Gov. Alejandro Garcia Padilla address the nation in a televised speech on Monday. CreditAlvin Baez/Reuters

The governor of Puerto Rico redoubled threats on Wednesday of a major bond default, as an effort to help the struggling commonwealth use bankruptcy to shed debt headed for defeat in Congress.

Gov. Alejandro García Padilla warned in a speech at the National Press Club in Washington that Puerto Rico would probably miss debt payments in January or May because its government had run out of cash.

“There is no money,” he said. “I don’t have a printing machine.”

The governor’s comments came as Congress omitted from a federal spending bill any measures to allow Puerto Rico to restructure its roughly $72 billion of debt in Federal Bankruptcy Court…

Governor of Puerto Rico Warns of Looming Default Without Bankruptcy Plan

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