Puerto Rico pension, highway agency join government in bankruptcy

Puerto Rico pension, highway agency join government in bankruptcyPuerto Rico’s federal oversight board has sought bankruptcy protection for the island’s highway authority and largest public pension, making them the latest commonwealth entities to turn to a court to work out debt. The board filed the cases late on Sunday in U.S. District Court in San Juan, under a process akin to U.S. bankruptcy, known as Title III, that was created by the U.S Congress last year. The latest filings could set the stage for an unconventional fight between retirees and the very lenders whose money was supposed to sustain them, an indication of just how complex Puerto Rico’s debt structure is.



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