The Oversight Board and the other PREPA parties are attempting to create precedent that frontally attacks not only PREPA bondholders and their insurers but also municipal revenue bond finance and basic bankruptcy jurisprudence.
The Financial Oversight and Management Board for Puerto Rico and its Fiscal Agency and Financial Advisory Authority are facing a nearly $90 million federal lawsuit from bondholders accusing them of shielding the Puerto Rico Industrial Development Co. from repaying its debts.