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A12 WORLD NEWS
Thursday 4 May 2017
Report: Puerto Rico turns to courts for debt protection

DANICA COTO others will be resolved lion in overall debt when it judge will now be in charge A group representing some
Associated Press through negotiations with filed for bankruptcy in 2013, of the restructuring. Bond- of those holding $16 billion
SAN JUAN, Puerto Rico bondholders. He said he which was the biggest U.S. holders cannot challenge worth of general obligation
(AP) — Puerto Rico’s gov- did not yet have details on municipal bankruptcy ever. Rossello’s decision for 120 bonds accused the board
ernor turned to the courts the breakdown of those Puerto Rican officials trig- days of sabotaging consensual
Wednesday to protect the debts. The island’s Elec- gered the bankruptcy-like Elias Sanchez, the gover- negotiations and forcing
U.S. territory from a crushing Puerto Rico into bankrupt-
$73 billion debt in the larg- cy.
est effort ever made by a “The economy of Puerto
U.S. government to shield Rico will be put on hold for
itself from creditors. years,” said Andrew Rosen-
Gov. Ricardo Rossello berg, adviser to the Ad Hoc
made the announcement Group of Puerto Rico Gen-
after negotiations with eral Obligation Bondhold-
Puerto Rico’s bondholders ers.
failed. Rossello said a fed- “Make no mistake: The
eral control board oversee- board has chosen to turn
ing the island’s finances Puerto Rico into the next
agreed with his request to Argentina.”
put certain debts before a Board Chairman Jose Carri-
federal bankruptcy court. on did not immediately ad-
The outcome of the case dress those comments, but
could have implications for said in an earlier statement
financially troubled U.S. cit- that while the bankruptcy-
ies or states. like process is needed to
“We’re going to protect offset lawsuits, consensual
our people,” the governor negotiations are still pref-
said hours after the territory erable and the board will
was hit with multiple law- pursue talks with willing
suits from creditors seeking creditors.
to recuperate the millions Gov. Ricardo Rossello speaks in San Juan, Puerto Rico. Rossello announced on Wednesday, May “The government’s liquid-
of dollars they invested in 3, 2017, a historic restructuring of a portion of the U.S. territory’s $70 billion debt through courts af- ity and solvency problems
ter negotiations with bondholders failed. The announcement marks the biggest bankruptcy-type
bonds issued by Puerto process ever for the U.S. municipal bond market. are massive and Title III has
Rico’s government, which (AP Photo/Carlos Giusti) now become necessary
has declared several de- to protect the people of
faults amid a 10-year reces- tric Power Authority owes process after declaring nor’s representative to the Puerto Rico and avoid fur-
sion. some $9 billion, the Aque- they could not agree to the federal control board, criti- ther negative impact on
Rossello said one of the ducts and Sewer Author- huge cuts in spending and cized creditors for filing law- the economy from a flurry
lawsuits sought to claim all ity has roughly $5 billion in new taxes demanded by suits even as the governor of litigation and continued
revenues generated by the outstanding debt and the investors. A fiscal plan for continued to hold what he uncertainty,” he said, re-
island’s Treasury Depart- Highways and Transporta- Puerto Rico sets aside $800 called good-faith negotia- ferring to the name of the
ment for bondholders. tion Authority owes around million a year for debt pay- tions after a litigation freeze bankruptcy-like process.
“I’m not going to allow that $7 billion. ments, a fraction of the $35 expired Monday. He told reporters that debt
to happen,” he said. Overall, Puerto Rico has billion due in interest and “When a line is crossed, the related to Puerto Rico’s
Rossello said the debts of $73 billion in public debt. By payments over the next government has to act in sales tax revenue bonds
some agencies will be re- comparison, the U.S. city of decade. favor of the people of Puer- will likely be restructured in
structured in court, while Detroit had less than $20 bil- A federal district court to Rico,” Sanchez said. court.q

Mexicans shocked by assault on family involving rape, murder

MARK STEVENSON anonymity because she on a federal highway, but the reality that some states tions between rival drug
Associated Press was not authorized to be said state investigators once viewed as havens gang factions left at least
MEXICO CITY (AP) — Mexi- quoted by name. were looking into the case from violence have turned one person dead in the city
cans accustomed to vio- The family had parked their and expressed hope that bloody. Recent shootings of Reynosa, across the bor-
lent crime are in shock over pickup by the side of the video cameras at the toll have marred the tranquil- der from McAllen, Texas.
the brutality of an assault highway apparently so the booths might help iden- ity of resorts such as Can- Reynosa has long been the
in which assailants raped father could urinate, some- tify the attackers. States cun in Quintana Roo state scene of bloody shootouts
a woman and her 14-year- thing not uncommon in an such as Puebla had large- and the twin resorts of Los between rival factions of
old niece, killed her 3-year- area where there are few ly been spared the high- Cabos in Baja California the Gulf cartel and authori-
old son, beat the husband, public bathrooms. profile, violent crimes that Sur state. Baja California ties.
stole the family’s pickup The assailants, traveling in have plagued neighboring Sur saw 133 slayings during A statement from the office
truck and left them on the two cars, blocked the fam- states like Veracruz, where the first quarter of this year, of Tamaulipas state’s se-
side of a dark highway. ily’s vehicle on the shoulder drug cartels have been compared to just 17 during curity spokesman said one
The family had to walk of the road. The toddler more active. But recently the same period of 2016 — person was found dead af-
about a mile (1½ kilome- was either shot or killed by Puebla has become one of a 682 percent jump that ter a string of shootings and
ters) to the nearest toll a piece of flying glass when the states where fuel-theft was the largest annual per- road blockades that broke
booth to seek help with the attackers shot out one rings — often linked to drug centage increase in all of out around midnight and
the dead boy in their arms, of the truck’s windows. cartels or gangs — have Mexico amid a general rise lasted into Wednesday
said an official in the cen- The Puebla state prosecu- become more active, tap- in homicides for the coun- morning. It was unclear if
tral state of Puebla. The of- tor, Victor Carranca, con- ping into government pipe- try. Also on Wednesday, the dead person was a
ficial agreed to give details firmed only the rapes. He lines at a high rate. authorities reported that a bystander or participant in
of the case only if granted said the crime occurred Mexico is struggling with series of violent confronta- the fighting.q