A second U.S. hedge fund has filed a lawsuit against Puerto Rico, challenging a new law that would allow some public corporations to restructure their debt if necessary.
In a lawsuit filed Tuesday, the hedge fund BlueMountain Capital Management, LLC says the law is unconstitutional.
The company holds bonds issued by Puerto Rico’s power company, which many believe will be the first to restructure its debt. The Electric Power Authority holds some $9 billion in debt.
The Templeton and Oppenheimer investment funds previously filed a similar lawsuit on June 28. The government has asked to have that lawsuit dismissed.
The law was approved as Puerto Rico seeks to emerge from a nearly decade-long economic slump and struggles with $73 billion in public debt.