The judge overseeing Puerto Rico’s nearly five-year-long debt restructuring process has approved a debt adjustment plan that is intended to revitalize the commonwealth's economy and reduce its $135 billion in liabilities.
U.S. District Judge Laura Taylor Swain, who splits her time between Manhattan and San Juan federal courts, approved the plan in an order filed on Tuesday, bringing nearly half a decade of litigation over the Puerto Rico’s financial standing to a close.
Puerto Rico filed for protection under a bankruptcy-like law, known as Title III, in May 2017. Its $135 billion in liabilities included more than $55 billion in underfunded pension obligations. The debt adjustment plan, proposed by a federally-appointed financial oversight board, incorporates settlements among a wide array of distinct creditor groups.
The plan reduces $33 billion in bond debt to $7 billion.
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