U.S. Senator Bob Menendez (D-N.J.) and Representative Nydia Velázquez (D-N.Y.-07) today reiterated the Congressional intent of the Puerto Rico Recovery Accuracy in Disclosures Act (PRRADA), which they both led in their respective chambers and was signed into law by President Biden in late January:
"PRRADA’s Congressional intent to inject transparency into Puerto Rico’s debt restructuring process is crystal clear. The only advisers and consultants who do not have to disclose their conflicts of interest, in accordance with the new law, are those below the dollar threshold established by the court. Every entity above this threshold is to comply with disclosures. Such disclosures are aligned with U.S. bankruptcy requirements in the mainland United States. The disclosure required under PRRADA is especially critical as Puerto Rico enters the final phases of its bankruptcy proceedings and continues its work to recover and rebuild. "The people of Puerto Rico deserve no less than transparency in a process that has slashed government budgets and thus harmed families, seniors, and communities across the island and its overall recovery efforts. PRRADA was enacted to close an unfair loophole in PROMESA that for too long allowed bankruptcy advisers and consultants to get rich off of worsening economic inequalities in Puerto Rico without having to disclose their conflicts of interest with creditors to whom Puerto Rico owed money. As members of Congress, we will continue to monitor PRRADA’s implementation to ensure it reflects Congressional intent."
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