On June 13, 2016, Kramer Levin scored a major victory for Franklin Advisers and OppenheimerFunds when the U.S. Supreme Court ruled 5-2 that Puerto Rico’s Debt Enforcement and Recovery Act is pre-empted by the Federal Bankruptcy Code. Puerto Rico had adopted the act to compel a restructuring of more than $18 billion in bonds issued by the commonwealth’s public electric, sewer and highway corporations. This victory protects bondholders across the U.S. from Puerto Rico’s now-void statute, and should help protect bondholders from other states or territories potentially trying to implement their own restructuring statutes in lieu of the Federal Bankruptcy Code.