Investors in the debt of Puerto Rico’s power utility have offered a 30-day extension of a creditor agreement that expires today, Bloomberg News reported today. The Puerto Rico Electric Power Authority (PREPA) has $8.6 billion of securities. Under the bondholder offer, the electricity provider would give creditors a restructuring plan by June 1.
Puerto Rico in Distress
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Puerto Rico’s public agencies should be able to seek bankruptcy, Jeb Bush, a probable presidential candidate, said yesterday during a visit to the U.S. territory, Bloomberg News reported yesterday. Commonwealth officials are promoting a bill that would enable some agencies to access chapter 9 under federal bankruptcy law.
Puerto Rico’s power utility disagrees with a proposal from bondholders to modernize the agency and fix its finances as a contract between the parties is set to expire at month-end, Bloomberg News reported on Friday.
Puerto Rico's troubled utility, PREPA, made another withdrawal from its reserve account to make a quarterly bond payment on April 1, according to a regulatory filing posted by the utility, Reuters reported yesterday.
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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.