With Puerto Rico facing $70 billion of debt, U.S. congressional lawmakers are attempting to introduce legislation granting the commonwealth to file for Chapter 9 bankruptcy.

Democratic Sens. Chuck Schumer of New York and Richard Blumenthal of Connecticut are expected to file a bill complementing a House of Representatives legislation authorizing Puerto Rico's public enterprises to restructure its debts under Chapter 9 of the federal Bankruptcy Code.

The House bill is H.R. 870, titled the "Puerto Rico Chapter 9 Uniformity Act of 2015." According to Puerto Rico's congressman, Pedro Pierluisi, a non-voting member with the official title Resident Commissioner, all 50 U.S. states have the benefits of filing for Chapter 9 bankruptcy, but the same assistance does not include U.S. territories.

"H.R. 870 does not require the federal government to spend a single dollar," said Pierluisi in a statement on June 30. "It would simply grant the government of Puerto Rico a power that all state governments have, namely the ability to authorize one or more of its insolvent public enterprises to work out a path forward with its creditors under the supervision of a federal bankruptcy judge based on federal substantive and procedural law."

According to the Puerto Rican resident commissioner, the bill would be the best course of action for the commonwealth and its creditors. He added, "The alternative is a legal no-man's land that benefits neither Puerto Rico nor those who have loaned the territory money."

Pierluisi said Blumenthal and Schumer intend to introduce a complimentary senate bill "at the appropriate time." Pierluisi noted he has worked with senators, including Blumenthal and Schumer, and hopes their bill will be given careful consideration in the Senate.

"I want to emphasize that H.R. 870 has garnered broad support from across the political spectrum, and has been endorsed by numerous conservative individuals and organizations," Pierluisi stated, noting support from Fitch Ratings, Banco Popular, Puerto Rico Chamber of Commerce and former House Speaker Newt Gingrich.

He continued, "Along with my allies in Congress, I will do everything within my power to move this legislation forward on a bipartisan basis."

As Latin Post reported, Puerto Rico Gov. Alejandro Garcia Padilla revealed the island's current debt is "unpayable" and its size impedes the commonwealth from improving. According to the governor, the island "inherited" nearly $70 billion of debt -- a figure he claimed "is essentially the same" as two years ago, but he denied allegations that the debt is solely the result of loans.

"These are not easy times that we have had to live," said Garcia Padilla. "But if we battle together, against any enemy, against any crisis, united, Puerto Rico will prevail."

As Pew Research Center noted, most Puerto Ricans living in the mainland U.S. are living in The Bronx, with nearly 300,000 people. Bronx Borough President Ruben Diaz Jr., whose parents were born in the commonwealth, called the island's debt situation as "dire" and requires the federal government's attention.

"I have, and will continue to, push for federal legislation that would allow the commonwealth of Puerto Rico to declare bankruptcy and restructure its debt," said Diaz, Jr. in a statement. "This course of action is a better plan than simply allowing the island's government to default, and I hope that Congress will act on this grim news with haste."

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For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: m.oleaga@latinpost.com.

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