The Deal: OpEd: Lessons From Puerto Rico’s Restructuring
January 31, 2022
O’Melveny partners John Rapisardi and Peter Friedman co-authored this article outlining their work representing the government of Puerto Rico in its US$120 billion restructuring, the largest municipal bankruptcy in US history. “It was a gratifying moment for us on Jan. 18 when US District Court Judge Laura Taylor Swain approved the plan of adjustment for the Commonwealth of Puerto Rico’s central government bonds and obligations,” the authors wrote. Puerto Rico began its restructuring in May 2017 with a multitude of issues including low liquidity, high debt obligations, a stagnant economy, and an insolvent pension system. “We were privileged to assist Puerto Rico in its financial rehabilitation and restructuring,” the authors wrote. “The lesson of Puerto Rico is that municipal restructurings are interactive, multi-faceted endeavors and that all efforts — political, transactional and legal — must be directed to serve the interests of the people first.”
Read the full article here.