The Case For Puerto Rico Chapter 9 Extension

Since Puerto Rican Governor Alejandro García Padilla declared on June 28 that the U.S. territory’s approximately $72 billion debt was “not payable,” a Working Group established to start on a comprehensive fiscal adjustment plan to restructure the U.S. territory’s debt is set to release their plan by September 8.
Details of the plan were revealed in leaked documents obtained, and posted, by the local Puerto Rican newspaper, NotiCel, reveal that the plan for fiscal reform is underwhelming. Dan Hanson, an analyst at Height Securities, notes that “the plan as presented still implies that (Puerto Rico) needs $2.5 billion in debt relief per year in medium term, which implies that the commonwealth is still intending to deeply haircut bondholders of many (or most) Puerto Rican bonds.”

What do you think?