Governor Ricardo Rossello said yesterday that assets of the Puerto Rico Electric Power Authority (PREPA), the largest U.S. public power provider, could reap as much as $4 billion, Bloomberg News reported. The governor is seeking to place the bankrupt utility into private hands.
Puerto Rico in Distress
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A U.S. federal judge yesterday dismissed a lawsuit by some of Puerto Rico’s bondholders, who had argued that the U.S. territory broke the law by defaulting on constitutionally-guaranteed debt despite having the money to make payments, Reuters reported.
Puerto Rico’s government unveiled a fiscal plan yesterday under which the commonwealth would only be able to support $2.5 billion to $14 billion of debt in the long term, a fraction of its current level, the Washington Post reported. The plan suggests that holders of its bonds might receive as little as a nickel on the dollar.
Puerto Rico’s governor projected his bankrupt, hurricane-ravaged U.S. territory will carry budget gaps for the next four fiscal years, leaving nothing to pay back the island’s $72 billion in bond debt until fiscal year 2022, according to Reuters. Governor Ricardo Rosselló made the projections in a revised fiscal turnaround plan released yesterday.