Judge Francisco Besosa of the US District Court for the District of Puerto Rico issued a decision on February 6 striking down the Puerto Rico Public Corporation Debt Enforcement and Recovery Act.
Judge Besosa ruled that the Recovery Act – a commonwealth law under which certain Puerto Rico public corporations were authorized to restructure their debts – is preempted by the Federal Bankruptcy Code and is therefore void pursuant to the Supremacy Clause of the United States Constitution. The Commonwealth defendants, and their successors in office, are permanently enjoined from enforcing the Recovery Act."
I wonder if the recent news report of Attiva meeting with the bank as a possible buyer has something to do with the huge block sale of preferreds and its sudden big drop in price (dilution?). Could Attiva have provided the bank with cash to satisfy their capital requirements with FDIC in return for preferreds? This could also explain why Attiva has deleted their twitter profile -- they're now in a quiet period until fed approval and news release. This could be very good for shareholders if the bank gets saved and can continue on in court to win the $225M payment from the commonwealth. Very interesting, indeed.