Puerto Rico’s creditors prepare for a long court fight

Puerto Rico’s creditors are hunkering down for a long fight to recoup their investment in the U.S. territory after its government began a bankruptcy-like process in the courts. Talks with creditors broke down Tuesday after a litigation freeze expired at midnight Monday, and officials made a formal appeal for debt relief. U.S. Supreme Court Chief Justice John Roberts will appoint a federal district judge to oversee the case and divvy up the territory’s assets. Any plan must be approved by the federal control board authorized last year by Congress to oversee Puerto Rico’s financial mess. The island’s debt reorganization effort is the largest ever made by a U.S. government entity. Puerto Rico has $73 billion in public debt. Detroit, the last local government to declare bankruptcy had less than $20 billion in debt. The reorganization process could take as long as four years, but officials haven’t given up hope for reaching a deal with bondholders before the courts step in.