Puerto Rico's Financial Future Now in the Hands of a Single Judge Overseeing Massive Bankruptcy

Puerto Rico has announced plans to close 179 public schools just days after filing for a form of bankruptcy protection, seeking to restructure $123 billion in debt and pension obligations, in the largest local government insolvency in U.S. history. The move is likely to slash money for healthcare, pensions and infrastructure. The territory petitioned for relief under Title III of the PROMESA law, which recognizes that Puerto Rico is not part of any state and must in some ways be treated as sovereign. Puerto Rico is legally barred from using Chapter 9, the bankruptcy route normally taken by insolvent local governments.