By THE STAR STAFF The U.S. Court of Appeals for the First Circuit has upheld a ruling that strips Puerto Rico Electric Power Authority (PREPA) bondholders of any recovery from the Commonwealth of Puerto Rico’s bankruptcy-style restructuring, concluding that their $8.5 billion claim must be subordinated under Section 510(b) of the Bankruptcy Code. In a decision issued September 23, 2026, a three‑judge panel affirmed U.S. District Judge Laura Taylor Swain’s determination that the bondholders’…
