Emory Bankruptcy Developments Journal Volume 35 Issue 2 The Sixteenth Annual Emory Bankruptcy Developments Journal Symposium 2019 A Fly in the Ointment: PROMESA's Drafting Error in Section 314(b)(7) Christine J. Joh Follow this and additional works at: https://scholarlycommons.law.emory.edu/ebdj Recommended Citation Christine J. Joh, A Fly in the Ointment: PROMESA's Drafting Error in Section 314(b)(7), 35 Emory Bankr. Dev. J. 645 (2019). Available at: https://scholarlycommons.law.emory.edu/ebdj/vol35/iss2/10 This Comment is brought to you for free and open access by the Journals at Emory Law Scholarly Commons. It has been accepted for inclusion in Emory Bankruptcy Developments Journal by an authorized editor of Emory Law Scholarly Commons. For more information, please contact
[email protected]. JOHCOMMENTPROOFS_7.11.19 7/11/2019 10:07 AM A FLY IN THE OINTMENT: PROMESA’S DRAFTING ERROR IN SECTION 314(b)(7) ABSTRACT When Congress amended the Bankruptcy Code in 1984, Congress precluded Puerto Rico from seeking bankruptcy relief under chapter 9 (municipal bankruptcy). There is no satisfactory explanation for the exclusion because no legislative history exists to offer an explanation. Embroiled in a $123 billion debt crisis1 and left without a remedy, Puerto Rico enacted its own municipal bankruptcy law in 2014, in an effort to restructure some of its public debts. In Puerto Rico v. Franklin California Tax-Free Trust,2 the U.S. Supreme Court conclusively held that § 903 of the Bankruptcy Code preempts Puerto Rico’s own municipal bankruptcy law.3 Recognizing that Puerto Rico was truly left “in a no man’s land,” Congress enacted the Puerto Rico Oversight Management and Economic Stability Act (“PROMESA”) in 2016 to assist Puerto Rico in restructuring its debts.