Puerto Rico Power Debt Deal Collapses Amid Bondholder Exit and Federal Board Shakeup

In a stark reminder of the consequences when fiscal responsibility is sidelined, the fragile effort to restructure over $9 billion in debt held by Puerto Rico's struggling Electric Power Authority has collapsed. This unraveling comes after major bondholders, including BlackRock Financial Management, pulled out following a sweeping overhaul of the federal control board overseeing the island's finances. The original plan sought to cut the debt owed to creditors from an untenable $8.5 billion down to $2.6 billion—a compromise clearly grounded in realism given Puerto Rico's economic constraints. However, the recent dismissal of nearly all board members by the Trump administration...