An adviser to Puerto Rico Governor Ricardo Rossello said on Wednesday the distressed U.S. territory would not necessarily file for bankruptcy if it failed to reach a debt restructuring deal with creditors before Monday's negotiating deadline.
"It depends on legal actions, if (creditors) go after our officials,” Elias Sanchez, Rossello’s liaison to Puerto Rico’s federal financial oversight board, told Reuters at an event in Washington where Rossello spoke. “Maybe, but maybe not, too.”
Sanchez’s comments were the latest indication Puerto Rico's leadership does not view bankruptcy as the immediate certainty that many experts and people involved in the talks expect.
Under the federal Puerto Rico rescue law, PROMESA, Puerto Rico has until Monday to negotiate with stakeholders on a plan to reduce its crushing $70 billion debt load, or else open itself to lawsuits from creditors.