Jane’s LME Addiction — David Skeel talks priorities and Promesas in restructuring Puerto Rico

David Skeel joins Jane Komsky to discuss his book Promise Land and his experience on Puerto Rico’s oversight board during its restructuring. The episode covers the competing claims across roughly $18bn of general obligation bonds, $18bn of Cofina bonds, clawback creditors, pension bonds and general unsecured creditors, and recounts Aurelius’s role in the process. It also explains how Promesa created the oversight board and Title III framework, why Skeel views an out-of-court resolution as unworkable, and how Hurricane Maria, political upheaval, the pandemic and board divisions affected negotiations.

1. Skeel maps competing claims involving roughly $18bn of general obligation bonds, $18bn of sales tax-backed Cofina bonds, clawback creditors, pension bonds and general unsecured creditors.
2. He recounts Aurelius’s role and its attempt to mastermind the restructuring.
3. The episode explains how Promesa created the oversight board and Title III restructuring framework, and why Skeel believes an out-of-court resolution was ultimately unworkable.
4. Skeel describes unforeseen obstacles including Hurricane Maria, political upheaval and the pandemic, as well as divisions within the board that complicated dealings with creditors.