Puerto Rico is desperately trying to reorganize its $72 billion debt, but it faces a unique hurdle…
You see, it's an unincorporated territory, not a state. It can't actually declare Chapter 9 bankruptcy.
Without those legal protections, the Caribbean island is clearly sunk.
What isn't so clear now is the risk to mainland investors. There will be losses either way, but it's too early to say how big they'll be and how hard they'll hit.