U.S. high court could spur Congress on Puerto Rico debt crisisWASHINGTON/SAN JUAN (Reuters) - As the U.S. Congress drags its feet on a bill to address Puerto Rico’s $70 billion debt crisis, it could get kicked into high gear by an unlikely source: the Supreme Court.  The highest U.S. court is due to rule by the end of June on the validity of a Puerto Rico law that would allow the U.S. territory to restructure the chunk of its debt issued by public agencies, more than $20 billion, in a bankruptcy-like process. The court fight is playing out as the Republican-led Congress grapples with legislation that lawmakers hope will prevent the need for a bailout of the territory of 3.5 million U.S. citizens. The legislation is expected to put Puerto Rico’s finances under federal oversight through a control board and let the Caribbean island cut debt through a bankruptcy-like restructuring process. It would preempt the Recovery Act, the local restructuring law that was thrown out in U.S. courts before Puerto Rico asked the Supreme Court to reinstate it. Puerto Rico is not covered by federal bankruptcy laws that U.S. cities and public agencies can use, so some U.S. lawmakers view legislation as the only way to keep the debt crisis from worsening. But drafting the bill has been laborious. Some bondholders, including U.S. hedge funds, and Republicans are seeking to ensure that creditors get paid as much as possible of what they are owed. Congressional Democrats, the Obama administration and Puerto Rico itself are trying to prevent austerity that could threaten services on the island. An early draft of the bill by the House of Representatives Natural Resources Committee never made it to a vote, and the panel on Wednesday delayed unveiling the latest draft, citing the need for “a number of refinements.” Some Republicans oppose inclusion of a “cram-down” provision that would let Puerto Rico impose debt cuts on creditors who do not agree to them. A Supreme Court decision on Puerto Rico’s law could come as soon as Monday. The ruling could change the political dynamics for Republicans by resurrecting a law that is viewed as even less palatable to them than the congressional bill, according to congressional sources and experts who follow the debate.  Many of the creditors lobbying conservatives in Congress to oppose the legislation, known as the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), would prefer to keep debt-restructuring talks out of a bankruptcy court, or at least avoid cram-down. That is because in the normal course of business they are entitled to full repayment, but in a bankruptcy proceeding they could be legally made to accept discounts.  If the Supreme Court reinstates the Recovery Act, the congressional legislation might not seem so bad to creditors in comparison, said Melissa Jacoby, a University of North Carolina School of Law bankruptcy expert and professor. “It might alter the lobbying landscape,” Jacoby said. Puerto Rico has already defaulted on some of its debt, most recently the bulk of a $422 million payment owed by its primary government bank. The Recovery Act, if revived, would let the island restructure debt at public utilities like power authority PREPA and water authority PRASA, though the island’s legislature could try to expand it to cover other debts, Jacoby said. The Supreme Court’s March 22 oral arguments indicated the justices could uphold the law. Such a ruling could prompt creditors and Republican lawmakers to embrace the need to pass the PROMESA bill. The legislation is expected to carry more bondholder protections than the Recovery Act, requiring an attempt at consensual restructuring talks as a condition for any debt cuts. “Those very same players who are now blocking our (congressional) legislation will, all of a sudden, encourage the (Republican) majority to pass some legislation” if the Supreme Court revives the Recovery Act, said a Democratic House aide, speaking on condition of anonymity. The island’s moment of truth could strike by June 30. That is the date by which the Supreme Court is expected to rule and a day before Puerto Rico faces a $1.9 billion debt payment that its governor has said it cannot afford. Congress is aiming to pass legislation to address Puerto Rico’s crisis before that payment.   Steny Hoyer, the second-ranking House Democrat, told Reuters the high court’s ruling “could have some effect” on PROMESA’s drafting process “depending on what the Supreme Court says about Puerto Rican authority to do whatever it needs to do.” A source close to major creditors said a ruling reinstating the Recovery Act could encourage Congress to pass legislation for a different reason: creditors would keep litigating different aspects of that law, perpetuating Puerto Rico’s economic uncertainty. Parish Braden, a spokesman for House National Resources Committee Republicans, said Congress ultimately must act regardless of what the Supreme Court does. “The ball is already in Congress’ court,” Braden said. politicsNews
high court could spur congress puerto rico debt juan reuters as congress drags feet bill address puerto rico billion debt crisis could get kicked high gear unlikely source supreme court the highest court due rule end june validity puerto rico law would allow territory restructure chunk debt issued public agencies billion process the court fight playing congress grapes legislation lawmakers hope prevent need bailout territory million citizens the legislation expected put puerto rico finances federal oversight control board let caribbean island cut debt restructuring process it would prompt recovery act local restructuring law thrown courts puerto rico asked supreme court reinstate puerto rico covered federal bankruptcy laws cities public agencies use lawmakers view legislation way keep debt crisis worsening but drafting bill laborious some bondholders including hedge funds republicans seeking ensure creditors get paid much possible owed congressional democrats obama administration puerto rico trying prevent austerity could threaten services island an early draft bill house representatives natural resources committee never made vote panel wednesday delayed unveiling latest draft citing need number some republicans oppose inclusion provision would let puerto rico impose debt cuts creditors agree a supreme court decision puerto rico law could come soon monday the ruling could change political dynamics republicans resurrection law viewed even less playable congressional bill according congressional sources experts follow debate many creditors lobbying conservatives congress oppose legislation known puerto rico oversight management economic stability act process would prefer keep talks bankruptcy court least avoid that normal course business entitled full repayment bankruptcy proceeding could legally made accept discounts if supreme court reinstated recovery act congressional legislation might seem bad creditors comparison said melissa jacob university north carolina school law bankruptcy expert professor it might alter lobbying landscape jacob said puerto rico already defaulted debt recently bulk million payment owed primary government bank the recovery act revived would let island restructure debt public utilities like power authority prep water authority prasad though island legislature could try expand cover debts jacob said the supreme court march oral arguments indicated justices could uphold law such ruling could prompt creditors republican lawmakers embrace need pass process bill the legislation expected carry bondholder protections recovery act requiring attempt consensual restructuring talks condition debt cuts those players blocking congressional legislation sudden encourage republican majority pass legislation supreme court revives recovery act said democratic house aide speaking condition anonymity the island moment truth could strike june that date supreme court expected rule day puerto rico faces billion debt payment governor said afford congress aiming pass legislation address puerto rico crisis payment stony hover house democrat told reuters high court ruling could effect process drafting process depending supreme court says puerto rica authority whatever needs a source close major creditors said ruling reinstating recovery act could encourage congress pass legislation different reason creditors would keep mitigating different aspects law perpetuating puerto rico economic uncertainty parish broaden spokesman house national resources committee republicans said congress ultimately must act regardless supreme court the ball already congress court broaden said politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: U.S. high court could spur Congress on Puerto Rico debt crisisWASHINGTON/SAN JUAN (Reuters) - As the U.S. Congress drags its feet on a bill to address Puerto Rico’s $70 billion debt crisis, it could get kicked into high gear by an unlikely source: the Supreme Court.  The highest U.S. court is due to rule by the end of June on the validity of a Puerto Rico law that would allow the U.S. territory to restructure the chunk of its debt issued by public agencies, more than $20 billion, in a bankruptcy-like process. The court fight is playing out as the Republican-led Congress grapples with legislation that lawmakers hope will prevent the need for a bailout of the territory of 3.5 million U.S. citizens. The legislation is expected to put Puerto Rico’s finances under federal oversight through a control board and let the Caribbean island cut debt through a bankruptcy-like restructuring process. It would preempt the Recovery Act, the local restructuring law that was thrown out in U.S. courts before Puerto Rico asked the Supreme Court to reinstate it. Puerto Rico is not covered by federal bankruptcy laws that U.S. cities and public agencies can use, so some U.S. lawmakers view legislation as the only way to keep the debt crisis from worsening. But drafting the bill has been laborious. Some bondholders, including U.S. hedge funds, and Republicans are seeking to ensure that creditors get paid as much as possible of what they are owed. Congressional Democrats, the Obama administration and Puerto Rico itself are trying to prevent austerity that could threaten services on the island. An early draft of the bill by the House of Representatives Natural Resources Committee never made it to a vote, and the panel on Wednesday delayed unveiling the latest draft, citing the need for “a number of refinements.” Some Republicans oppose inclusion of a “cram-down” provision that would let Puerto Rico impose debt cuts on creditors who do not agree to them. A Supreme Court decision on Puerto Rico’s law could come as soon as Monday. The ruling could change the political dynamics for Republicans by resurrecting a law that is viewed as even less palatable to them than the congressional bill, according to congressional sources and experts who follow the debate.  Many of the creditors lobbying conservatives in Congress to oppose the legislation, known as the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), would prefer to keep debt-restructuring talks out of a bankruptcy court, or at least avoid cram-down. That is because in the normal course of business they are entitled to full repayment, but in a bankruptcy proceeding they could be legally made to accept discounts.  If the Supreme Court reinstates the Recovery Act, the congressional legislation might not seem so bad to creditors in comparison, said Melissa Jacoby, a University of North Carolina School of Law bankruptcy expert and professor. “It might alter the lobbying landscape,” Jacoby said. Puerto Rico has already defaulted on some of its debt, most recently the bulk of a $422 million payment owed by its primary government bank. The Recovery Act, if revived, would let the island restructure debt at public utilities like power authority PREPA and water authority PRASA, though the island’s legislature could try to expand it to cover other debts, Jacoby said. The Supreme Court’s March 22 oral arguments indicated the justices could uphold the law. Such a ruling could prompt creditors and Republican lawmakers to embrace the need to pass the PROMESA bill. The legislation is expected to carry more bondholder protections than the Recovery Act, requiring an attempt at consensual restructuring talks as a condition for any debt cuts. “Those very same players who are now blocking our (congressional) legislation will, all of a sudden, encourage the (Republican) majority to pass some legislation” if the Supreme Court revives the Recovery Act, said a Democratic House aide, speaking on condition of anonymity. The island’s moment of truth could strike by June 30. That is the date by which the Supreme Court is expected to rule and a day before Puerto Rico faces a $1.9 billion debt payment that its governor has said it cannot afford. Congress is aiming to pass legislation to address Puerto Rico’s crisis before that payment.   Steny Hoyer, the second-ranking House Democrat, told Reuters the high court’s ruling “could have some effect” on PROMESA’s drafting process “depending on what the Supreme Court says about Puerto Rican authority to do whatever it needs to do.” A source close to major creditors said a ruling reinstating the Recovery Act could encourage Congress to pass legislation for a different reason: creditors would keep litigating different aspects of that law, perpetuating Puerto Rico’s economic uncertainty. Parish Braden, a spokesman for House National Resources Committee Republicans, said Congress ultimately must act regardless of what the Supreme Court does. “The ball is already in Congress’ court,” Braden said. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: high court could spur congress puerto rico debt juan reuters as congress drags feet bill address puerto rico billion debt crisis could get kicked high gear unlikely source supreme court the highest court due rule end june validity puerto rico law would allow territory restructure chunk debt issued public agencies billion process the court fight playing congress grapes legislation lawmakers hope prevent need bailout territory million citizens the legislation expected put puerto rico finances federal oversight control board let caribbean island cut debt restructuring process it would prompt recovery act local restructuring law thrown courts puerto rico asked supreme court reinstate puerto rico covered federal bankruptcy laws cities public agencies use lawmakers view legislation way keep debt crisis worsening but drafting bill laborious some bondholders including hedge funds republicans seeking ensure creditors get paid much possible owed congressional democrats obama administration puerto rico trying prevent austerity could threaten services island an early draft bill house representatives natural resources committee never made vote panel wednesday delayed unveiling latest draft citing need number some republicans oppose inclusion provision would let puerto rico impose debt cuts creditors agree a supreme court decision puerto rico law could come soon monday the ruling could change political dynamics republicans resurrection law viewed even less playable congressional bill according congressional sources experts follow debate many creditors lobbying conservatives congress oppose legislation known puerto rico oversight management economic stability act process would prefer keep talks bankruptcy court least avoid that normal course business entitled full repayment bankruptcy proceeding could legally made accept discounts if supreme court reinstated recovery act congressional legislation might seem bad creditors comparison said melissa jacob university north carolina school law bankruptcy expert professor it might alter lobbying landscape jacob said puerto rico already defaulted debt recently bulk million payment owed primary government bank the recovery act revived would let island restructure debt public utilities like power authority prep water authority prasad though island legislature could try expand cover debts jacob said the supreme court march oral arguments indicated justices could uphold law such ruling could prompt creditors republican lawmakers embrace need pass process bill the legislation expected carry bondholder protections recovery act requiring attempt consensual restructuring talks condition debt cuts those players blocking congressional legislation sudden encourage republican majority pass legislation supreme court revives recovery act said democratic house aide speaking condition anonymity the island moment truth could strike june that date supreme court expected rule day puerto rico faces billion debt payment governor said afford congress aiming pass legislation address puerto rico crisis payment stony hover house democrat told reuters high court ruling could effect process drafting process depending supreme court says puerto rica authority whatever needs a source close major creditors said ruling reinstating recovery act could encourage congress pass legislation different reason creditors would keep mitigating different aspects law perpetuating puerto rico economic uncertainty parish broaden spokesman house national resources committee republicans said congress ultimately must act regardless supreme court the ball already congress court broaden said politicsnews