Puerto Rico debt plan gets OK

The judge overseeing Puerto Rico’s nearly five-yearlong debt restructuring process has approved a debt adjustment plan that is intended to revitalize the commonwealth’s economy and reduce its $135 billion in liabilities.

US District Judge Laura Taylor Swain approved the plan in an order filed on Tuesday, bringing nearly half a decade of litigation over Puerto Rico’s financial standing to a close.

Puerto Rico filed for protection under a bankruptcylike law, known as Title III, in May 2017. Its $135 billion in liabilities included more than $55 billion in underfunded pension obligations.

The plan reduces $33 billion in bond debt to $7 billion.