Aurelius Capital Master, Ltd. v. Commonwealth of Puerto Rico

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In this case brought by Puerto Rico general obligation bondholders (Bondholders), the First Circuit affirmed the district court's dismissal of the Bondholders' complaint seeking injunctive and declaratory relief claiming that they possessed a priority and property interest over certain revenues of the Puerto Rico government, holding that the district court correctly dismissed the Bondholders' complaint. This case arose from the restructuring of Puerto Rico's public debt under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act of 2016 (PROMESA). The Bondholders sought declarations to confirm their property rights to certain revenues of the Puerto Rico government, determine that the diversion of the revenues constituted an unconstitutional taking, and specify appropriate uses for those revenues. The district court dismissed certain counts of the Bondholders' complaint as seeking improper advisory opinions, another count presenting a takings claim as unripe, and almost all the remaining counts as barred under section 305 of PROMESA. The First Circuit affirmed, holding that the district court properly dismissed all counts. View "Aurelius Capital Master, Ltd. v. Commonwealth of Puerto Rico" on Justia Law