Puerto Rico’s main electricity provider extended an agreement with some bondholders to Nov. 20, giving the utility more time to negotiate with insurers that guarantee a portion of its debt against default, Bloomberg News reported on Friday. The Puerto Rico Electric Power Authority (PREPA) is trying to restructure $8.2 billion of debt to reduce its costs and free up cash for plant upgrades.
Puerto Rico in Distress
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Sen. Chuck Grassley (R-Iowa), who chairs the Senate Judiciary Committee, said yesterday that he will convene a hearing on Puerto Rico's financial turmoil on Dec. 1, Reuters reported yesterday.
Moody's Investor Service said yesterday that Puerto Rico is likely to default on at least some of its $355 million in debt payments due Dec. 1, citing growing liquidity pressures, Reuters reported. The U.S. commonwealth, facing around $70 billion in total debt, is struggling to breathe life into a stalled economy with a roughly 45 percent poverty rate.
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This wiki is a repository for members of the U.S. Congress, other policy makers, academics, investors, the media and the general public to understand the challenges facing Puerto Rico in 2016 and to provide data and information to begin crafting long term sustainable solutions. Click here to view.