1 00:00:00,040 --> 00:00:01,520 Speaker 1: All right, thank you, and now it's time for our 2 00:00:01,560 --> 00:00:05,280 Speaker 1: daily morning Bloomberg Law Brief, exploring legal issues in the news. 3 00:00:05,280 --> 00:00:07,000 Speaker 1: And the Bloomberg Law Brief is brought to you by 4 00:00:07,040 --> 00:00:11,559 Speaker 1: American Arbitration Association. Business disputes are inevitable, resolve faster with 5 00:00:11,600 --> 00:00:15,600 Speaker 1: the American Arbitration Association, the global leader in alternative dispute 6 00:00:15,680 --> 00:00:19,000 Speaker 1: resolution for over ninety years. More at a d r 7 00:00:19,200 --> 00:00:22,280 Speaker 1: dot org. Today Bloomberg La host Greg's Store and Michael 8 00:00:22,320 --> 00:00:26,159 Speaker 1: Best discussed Puerto Rico filing for protection from creditors and 9 00:00:26,200 --> 00:00:29,680 Speaker 1: seeking relief from over seventy billion dollars in debt. They 10 00:00:29,720 --> 00:00:33,199 Speaker 1: speak with the Bloomberg and News reporter Michelle Kaski. Just 11 00:00:33,240 --> 00:00:35,360 Speaker 1: start by giving us the backdrop. Tell us how we 12 00:00:35,400 --> 00:00:38,400 Speaker 1: got to the point where Puerto Rico has such a 13 00:00:38,440 --> 00:00:41,280 Speaker 1: massive amount of debt that it can't pay sure. Puerto 14 00:00:41,360 --> 00:00:44,120 Speaker 1: Rico has been troubled for a while. Their economy hasn't 15 00:00:44,159 --> 00:00:47,360 Speaker 1: grown in a decade, and they have a high unemployment rate. 16 00:00:47,400 --> 00:00:49,920 Speaker 1: People are residents are leading the island for the US 17 00:00:49,960 --> 00:00:53,440 Speaker 1: mainland to find work there. And over the years they've 18 00:00:53,440 --> 00:00:56,800 Speaker 1: had a lot of overspending and so to fill budget 19 00:00:56,840 --> 00:01:00,240 Speaker 1: holes they would borrow money and they have a wired 20 00:01:00,320 --> 00:01:01,920 Speaker 1: all the stebt. They've racked up all the set and 21 00:01:02,400 --> 00:01:05,640 Speaker 1: that's why we are where we are now. So there's 22 00:01:05,640 --> 00:01:08,160 Speaker 1: a law now that allows them to go to court. 23 00:01:08,160 --> 00:01:11,360 Speaker 1: Can you describe for us what legally they're they're trying 24 00:01:11,400 --> 00:01:14,800 Speaker 1: to do here? Yeah, what they're trying to do is 25 00:01:14,800 --> 00:01:17,800 Speaker 1: is reduce their debt. Is to get their debt slashed 26 00:01:17,800 --> 00:01:20,640 Speaker 1: in through court and to get creditors to accept losses. 27 00:01:21,200 --> 00:01:25,320 Speaker 1: And um. Congress approved this process last year in a 28 00:01:25,640 --> 00:01:28,839 Speaker 1: law called pro Mesa, and it basically is a way 29 00:01:28,840 --> 00:01:32,240 Speaker 1: for Puerto Rico to declare bankruptcy. Michelle, is this what 30 00:01:32,400 --> 00:01:35,840 Speaker 1: lawmakers expected? What happened when they enacted this law? I 31 00:01:35,880 --> 00:01:37,919 Speaker 1: remember you and I spent a lot of time working 32 00:01:37,959 --> 00:01:40,760 Speaker 1: together before Congress passed that law. When there was a 33 00:01:40,760 --> 00:01:44,080 Speaker 1: Supreme Court case over Puerto Rico's effort to file for 34 00:01:44,080 --> 00:01:46,959 Speaker 1: bankruptcy under a local law. On the Supreme Court said 35 00:01:47,000 --> 00:01:50,000 Speaker 1: that that they couldn't do that was this looked at, 36 00:01:50,280 --> 00:01:52,000 Speaker 1: what was the point of the congressional law if we 37 00:01:52,040 --> 00:01:54,720 Speaker 1: would just end up in the same place. Well, this 38 00:01:54,840 --> 00:01:57,480 Speaker 1: does give them a more orderly process to work out 39 00:01:57,520 --> 00:02:00,440 Speaker 1: their debt instead of all these different law suits that 40 00:02:00,480 --> 00:02:03,440 Speaker 1: are going on. This helps put a stay on those 41 00:02:03,520 --> 00:02:07,440 Speaker 1: lawsuits and uh, it gets all the parties together in 42 00:02:07,520 --> 00:02:10,560 Speaker 1: one court. One would think that, you know, the fact 43 00:02:10,639 --> 00:02:12,800 Speaker 1: that there's now a court process to do this would 44 00:02:12,880 --> 00:02:16,200 Speaker 1: have made a deal easier to reach for Puerto Rico 45 00:02:16,320 --> 00:02:20,640 Speaker 1: with its creditors. Why hasn't that happened, Well, there's there's 46 00:02:20,680 --> 00:02:24,440 Speaker 1: so many different creditors involved. Um Puerto Rico sold all 47 00:02:24,480 --> 00:02:29,120 Speaker 1: different types of municipal debt and with through different agencies, 48 00:02:29,200 --> 00:02:33,080 Speaker 1: and they all have different repayment pledges and and some 49 00:02:33,120 --> 00:02:35,840 Speaker 1: of those repayment pledges and and and revenue streams are 50 00:02:35,840 --> 00:02:38,840 Speaker 1: competing against each other. So to get everybody all on 51 00:02:38,840 --> 00:02:42,320 Speaker 1: the same board. And there's also a bond insures involved here, 52 00:02:42,360 --> 00:02:44,959 Speaker 1: so to get everybody on the same page as very difficult. 53 00:02:45,560 --> 00:02:48,359 Speaker 1: And as Bloomberg News reporter Michelle Kaski speaking with the 54 00:02:48,360 --> 00:02:50,679 Speaker 1: Bloomberg's Rag Store and Michael Best, you can listen to 55 00:02:50,720 --> 00:02:53,680 Speaker 1: Bloomberg Law weekdays at one pm Wall Street time here 56 00:02:54,120 --> 00:02:57,200 Speaker 1: on Bloomberg Radio. A military judge could send a new 57 00:02:57,240 --> 00:03:00,919 Speaker 1: timetable for the desertion case against Armies Argent Boberg Doll 58 00:03:00,960 --> 00:03:04,480 Speaker 1: as soon as today The judges already scratched three previous 59 00:03:04,520 --> 00:03:08,160 Speaker 1: trial dates mid delays over the exchange of classified information 60 00:03:08,400 --> 00:03:12,600 Speaker 1: between prosecutors and defense lawyers. That process is expected to 61 00:03:12,600 --> 00:03:15,440 Speaker 1: be a focus of a hearing today at Fort Bragg. 62 00:03:15,840 --> 00:03:19,120 Speaker 1: Burg Dollar is charged with the desertion and misbehavior before 63 00:03:19,160 --> 00:03:22,000 Speaker 1: the enemy. He left his post in Afghanistan in two 64 00:03:22,000 --> 00:03:24,839 Speaker 1: thousand nine and was held by the Taliban and its 65 00:03:24,840 --> 00:03:29,040 Speaker 1: allies for about five years. That's this morning's Bloomberg Law Brie. 66 00:03:29,040 --> 00:03:31,440 Speaker 1: If you can find more legal news at Bloomberg Law 67 00:03:31,480 --> 00:03:35,240 Speaker 1: dot com and Bloomberg BNA dot com. Attorneys will find 68 00:03:35,240 --> 00:03:38,360 Speaker 1: exceptional legal research and business development tools there as well. 69 00:03:38,760 --> 00:03:41,920 Speaker 1: Visit Bloomberg Law dot com and Bloomberg BNA dot com 70 00:03:42,040 --> 00:03:43,200 Speaker 1: for more information.