Puerto Rico Default Update

Just when you thought the marathon Puerto Rico Bankruptcy which launched the careers of a thousand new bankruptcy lawyers, the Governor of Puerto Rico had the temerity to kill the settlement proposal for the $8.3 billion of bonds issued by PREPA (Puerto Rico Electric Power Authority.) The Governor cited rising inflation and rising oil prices as the reason since they would require rate increases that the public could not afford. He did not cite Covid, but this must have been an oversight. Fortunately, most of these bonds are still held by the fools who lent the money in the first place without doing their due diligence. By now we all know that with Puerto Rico, you don’t live to regret it just once, but rather, many times as the schemes hatched by the lawyers get shot down when presented to the politicians. Perhaps those pandemic masks are being repurposed back to what they used to signify.