Puerto Rico’s bankruptcies up 32% Y-O-Y through October
San Juan, Ponce and Bayamón emerged as the cities with the most bankruptcies.
Puerto Rico saw a significant increase in bankruptcy filings from January to October 2024, with the total number of cases reaching 4,769, representing a 32% rise compared to the same period in 2023, according to a report by research firm Boletín de Puerto Rico.
By category, Chapter 13 filings — which allow individuals to reorganize their finances under court supervision — accounted for the largest portion, at 66.5% of all cases. Specifically, 3,173 Chapter 13 cases were recorded, a 30.8% increase year-over-year.
Chapter 7 bankruptcies, or full asset liquidations, represented 32.2% of the total, with 1,534 cases — a 37.2% increase.
Although Chapter 11 cases, filed mostly by businesses seeking to reorganize while remaining operational, declined by 1.8%, the number still reached 49.
Chapter 12, which focuses on family farmers and fishermen, recorded 13 cases, showing a notable increase, though exact percentages were not provided.
The report highlighted industries particularly affected by rising bankruptcy rates. The restaurant sector reported 19 bankruptcy cases, with a combined debt of $8.1 million. The construction industry followed with 13 cases and a total debt of $7.6 million.
Agriculture saw eight cases amounting to $8 million in debt, while the real estate sector reported eight bankruptcies but accumulated the highest debt at $75.8 million, indicating severe strain in that sector.
Geographically, San Juan, Ponce and Bayamón had the most bankruptcies. San Juan led with 391 filings, Bayamón recorded 293 and Ponce had 219 cases, all showing substantial increases.
Commercial bankruptcies rose sharply in several municipalities, with a 400% increase in Manatí, a 225% rise in Guaynabo and a 171% increase in San Juan.
This increase aligns with a broader trend in commercial bankruptcies across the island, with 285 cases filed in the first 10 months of 2024 — a 22.8% increase over 2023.
High-profile cases and total reported debt
Among the largest bankruptcies, Full House Development Inc. reported $44.5 million in debt in the real estate sector. Other notable cases included Golden Triangle Realty SE with $27.4 million in debt; Eco Green Recycle Corp., which owed nearly $8 million; and Orengo Air Corp., with debts totaling $5.3 million.
Overall, reported debt for bankruptcies in Puerto Rico from January to October 2024 stood at $730.5 million, a 29.7% decrease from $891.5 million in 2023.
This figure excludes HIMA Hospitals’ 2023 bankruptcy, which accounted for $472.3 million of that year’s debt. Without this outlier, 2023 debt would have been $419.2 million, indicating a 74.2% increase in 2024’s reported debt.
