Puerto Rico to file largest municipal bankruptcy in US history with $73 billion debt

Read more on this subject: World News
News Story Source: http://www.dailysabah.com, ASSOCIATED PRESS
Gov. Ricardo Rossello made the announcement after negotiations with Puerto Rico's bondholders failed. Rossello said a federal control board overseeing the island's finances agreed with his request to put certain debts before a federal bankruptcy court.

The outcome of the case could have implications for financially troubled U.S. cities or states.

"We're going to protect our people," the governor said hours after the territory was hit with multiple lawsuits from creditors seeking to recuperate the millions of dollars they invested in bonds issued by Puerto Rico's government, which has declared several defaults amid a 10-year recession.

Rossello said one of the lawsuits sought to claim all revenues generated by the island's Treasury Department for bondholders.

"I'm not going to allow that to happen," he said.

Rossello said the debts of some agencies will be restructured in court, while others will be resolved through negotiations
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