Democrats propose allowing Puerto Rico to declare bankruptcy

The Hill reports:

Senate Democrats have unveiled legislation to alleviate Puerto Rico’s debt woes, urging that the island be allowed to declare bankruptcy on all of its debt.

The bill, released Monday, would allow the U.S. territory to restructure its $72 billion in outstanding debt and create a fiscal oversight board for the island.

Bondholders: watch out you may lose a lot of your principal.