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Goldentree V.S.The People Of Puerto Rico

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Popular Democracy

    Currently GoldenTree owns $1 billion in PREPA bonds, which it started to buy when the public corporation was already in bankruptcy and continued to increase its investments, buying up bonds at low prices with each new economic hit that the island suffered, including after Hurricane Maria destroyed the island’s electrical grid system.

    Puerto Rico suffers from a weak and unstable electrical system where blackouts are a daily occurrence. More than seven years after the devastation caused by Hurricane Maria, which left whole regions of the archipelago without power for more than 6 months, the unreliable electrical infrastructure still impedes economic growth and quality of life. On top of this, the electric rate in Puerto Rico is 75% higher than the U.S. average, according to data from the U.S. Energy Information Administration and LUMA Energy. Customers pay one of the most expensive rates for the worst service.

    This report describes the abusive actions of GoldenTree, a vulture investment fund that is seeking to raise rates further in Puerto Rico in order to make millions of dollars in profits. These actions include a recent decision by the First Circuit Court of Appeals in Boston in favor of GoldenTree, which could impact any U.S. municipality’s ability to provide essential services.