Interesting pleading. I can see how that could be applied to Illinois with all of the fuckin debt it's issued over the years. There's a balanced budget requirement in the state constitution. There's not been a balanced budget in two decades, which happened like once. Current is $1.2B out of balance. I'm not sure if they can excuse lawmakers authorizing issuance of billions in debt by saying "they broke the constitution" and shafting investors. But interesting theory.
A little less than half of it is owned by the Puerto Rican people. Only about a quarter of all of Puerto Rico's debt is owned by hedge funds. Mostly owned by individuals and mutual funds. "Mom and pop" investors are shouldering this one.
Lobbyists? No. Rich Puerto Ricans? Maybe. Rich Americans? Probably. They're tax-exempt munis. Really nice for high incomes.