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May 18, 2017

Federal Judge Opens $123 Billion Puerto Rico Bankruptcy Hearings
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In Puerto Rico, a federal court in San Juan opened bankruptcy
proceedings Wednesday as the island seeks to restructure $123 billion in
debt and pension obligations. Judge Laura Taylor Swain will now oversee
the largest-ever municipal bankruptcy in U.S. history in proceedings
that are expected to drag on for years. Puerto Rico is legally barred
from using Chapter 9, the bankruptcy route normally taken by insolvent
local governments. Puerto Rico's debt crisis has forced austerity
measures on a population suffering from skyrocketing poverty and
unemployment. Most recently, the government closed nearly 200 schools
across the island.


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