David Skeel has spent much of his career as a professor of corporate law and bankruptcy at the University of Pennsylvania’s Carey Law School writing about financial distress. But for almost eight years, he served on Puerto Rico’s Financial Oversight and Management Board, which was charged with restructuring the commonweath’s debt of more than $120 billion, including unfunded pension liabilities.

Skeel discussed that experience and his new book about it, “Promise Land: The Inside Story of the Puerto Rico Debt Crisis,” on the most recent Drinks With The Deal podcast.

In addition to the size and complexity of the debt, the restructuring was complicated by Puerto Rico’s status as a U.S. territory and the distinctive political environment that has created; the damage caused by Hurricane Maria in 2017; and the resignation of Gov. Ricardo Rosselló in July 2019 after days of public protests.

While the board was able to restructure the commonwealth’s debt, the restructuring of Puerto Rico Electric Power Authority, which has about $8.5 billion of bonds, continues.

Skeel initially agreed to a three-year term on the board and promised he would serve the entire term “without flinching,” he said. Had he been asked if he would serve for eight years, he said, he probably still would have agreed, though he might have “taken a deep breath” and asked for “a night to think about it.”

Listen to the podcast with David Skeel below:

More podcasts from The Deal are available on iTunes, Spotify and on TheDeal.com. Skeel previously appeared on Fresh Start in 2022 and Drinks With The Deal in 2020.