Congress Grasps for Puerto Rico Rescue as House's Deadline Nears - Bloomberg Politics

"The only way the legislation will happen is if it does both, the oversight and restructuring, " said Pedro Pierluisi, a Democrat who represents Puerto Rico in Congress. "I don't see any kind of support for a board without, at the very least, a meaningful restructuring mechanism. If that's not included, it's not going to become law."

The legislative push promises to give the federal government a more central role in a crisis that's been steadily escalating since Governor Alejandro Garcia Padilla in June said the government can't afford to pay its $70 billion of debt. Puerto Rico has already defaulted on some securities and has warned that it may declare a moratorium on debt payments as soon as May if it no solution is found.

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Without the ability to file for Chapter 9 bankruptcy, Puerto Rico is facing potentially drawn out negotiations and court battles with its creditors. This month, Garcia Padilla proposed seeking to cut $22.7 billion from the government's tax-backed debt by persuading investors to exchange their bonds for new securities.