Assured Guaranty is suing Puerto Rico’s federal Oversight Board over its decision to push the Caribbean island’s electric utility into bankruptcy, the Royal Gazette reported. The Bermuda-based firm insures some of the bonds issued by PREPA, as the utility is known, and the bankruptcy comes after the rejection of a longstanding debt-restructuring agreement with creditors.
Puerto Rico in Distress
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The Puerto Rico power utility PREPA, laden with a $9 billion debt load, has filed for a form of bankruptcy, Puerto Rico's primary fiscal agent said yesterday, Reuters reported. The Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) said that PREPA power had filed in the U.S.
Bondholders of Puerto Rico's debt-laden power utility, PREPA, said yesterday that the agency had rejected a financing offer that might have allowed it to make a $450 million July 1 coupon payment, Reuters reported.
Puerto Rico's financial oversight board said yesterday that it was still in debt restructuring talks with creditors of the island's power utility, PREPA, a day after rejecting a proposed deal to restructure $9 billion of the utility's bonds, Reuters reported.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.