Attorneys Seek Time, Reject Dismissal of Puerto Rico Debt

Attorneys representing bondholders hit by a recent request to dismiss more than $6 billion of Puerto Rico’s debt have demanded more time to fight the proposal during a federal debt restructuring hearing.

The attorneys said Wednesday that all bondholders need to be alerted and had worries that some would be treated more favorably than others. They stressed the need to reach a consensus on how to proceed.

The hearing comes more than two weeks after a federal control board that oversees Puerto Rico’s finances asked Judge Laura Taylor-Swain to invalidate part of the more than $70 billion public debt, including all general obligation bonds issued in 2012 and 2014. The board alleges the issuance violated debt limits established by the island’s constitution.

Swain has not ruled on the issue.

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