UPDATE 5-Puerto Rico governor calls for bankruptcy; adviser says island 'insolvent'
* Governor wants bondholders to share the sacrifice
* Former bankruptcy judge: Puerto Rico "urgently needs our help"
* Report by former IMF economists calls the situation "dire" (Recasts with governor's remarks)
NEW YORK, June 29 (Reuters) - Puerto Rico's governor on Monday called for the commonwealth to be allowed to restructure its debts under U.S. bankruptcy code, while a newly appointed adviser to the U.S. territory said it is "insolvent" and will soon run out of cash.
Governor Alejandro Garcia Padilla, in a televised address, said sacrifice must be shared by bondholders, as he called for Washington to allow a bankruptcy debt restructuring.
The Caribbean island is struggling to relieve a $73 billion debt burden. It came to a crunch point on Monday - ironically at the same time as did debt-laden Greece - after a dire report on its stability by former International Monetary Fund economists was released ahead of key deadlines on Wednesday to repay debt.
Steven Rhodes, the retired U.S. bankruptcy judge who oversaw Detroit's historic bankruptcy and has now been retained by Puerto Rico to help solve its problems, gave a blunt assessment on Monday.
Puerto Rico "urgently needs our help," Rhodes said. "It can no longer pay its debts, it will soon run out of cash to operate, its residents and businesses will suffer," he added.
Puerto Rico's bonds skidded on Monday as investors sought greater compensation amid the heightened risk. Continuación...