The plan would cover $49.3 billion of Puerto Rico’s $72 billion debt, most of which is in the form of municipal bonds.

What I like about their current plan:

A potential sticking point is that Puerto Rico’s other long-term commitments, such as the pensions of retired government workers, would not be reduced under the new restructuring plan. Pensions do not currently have top legal priority in the order of creditors seeking payment, and some lawmakers think that switching around credit priorities for Puerto Rico would send a shock through the capital markets, making it harder for other states and cities to borrow.

Good. When someone pays a certain amount of money towards their pension and plan the rest of their life to live off of that pension, you can’t go cutting that pension just to kept bond speculators whole. It’s called speculation for a reason.

Source: Puerto Rico Aims to Appease Congress With New Debt Proposal – NYTimes.com