A big New York investment firm isn't happy that Puerto Rico has made it easier for some local public companies to restructure their debts.
BlueMountain Capital Management, a more than $20 billion hedge fund firm that focuses on investing in credit instruments, announced Tuesday it had filed a lawsuit against the government of Puerto Rico challenging the legality of the recently enacted Puerto Rico Public Corporation Debt Enforcement and Recovery Act.
BlueMountain owns power revenue bonds from the Puerto Rico Electric Power Authority, which it said is likely to seek to avoid its debts under the new law. PREPA has recently been downgraded by various ratings agencies to near-junk status. The struggling island-wide utility company reached a deal with some lenders in early July to delay its required payments by several weeks.
Read MorePuerto Rico power company's finances spark concern