Puerto Rico governor warns House panel to protect all stakeholders

Puerto Rico Gov. Ricardo Rossello told House Natural Resources Committee Chairman Rob Bishop, R-Utah, on Monday that his panel should not put bondholders before other stakeholders in the process to restructure the commonwealth's finances and improve access to capital markets.

Mr. Bishop, who sponsored 2016 legislation creating the oversight process and the federal Financial Oversight and Management Board, told the board in a March 29 letter that it needs to engage with debtholders and move more aggressively to implement reforms that include funding public pension plans.

Responding to that letter, Mr. Rossello wrote Mr. Bishop on Monday that the committee has two choices: supporting the "significant progress" made in certifying fiscal plans and budgets, or "obstructionist behavior that would undermine the duly elected government's authority and legitimacy."

"Sidelining the elected government will result only in chaos and confusion, which bondholders will seek to capitalize on to further undermine the statutory foundation of the restructuring process," jeopardizing months of progress, he wrote.