Puerto Rico’s cash-strapped power authority will have another two weeks to reach a deal with creditors after proposing a plan to restructure its finances this past week.
A Puerto Rico Electric Power Authority power station PHOTO: ALVIN BAEZ-HERNANDEZ/REUTERS
The Puerto Rico Electric Power Authority, known as Prepa, said Friday that creditors, which include bondholders, banks and bond insurers, have extended an agreement not to pursue remedies that could push the publicly owned utility into default until June 18. Prepa was last granted an extension at the end of April.
The accord came days after Prepa, which has about $9 billion in debt outstanding, presented creditors with a plan that includes at least $2.3 billion to modernize the authority and increase efficiencies, such as upgrading to natural-gas generation.
Economic terms of the plan weren’t released by the agency, which cited the continuing talks.
Stephen Spencer, a managing director at investment bank Houlihan Lokey who is financial adviser to Prepa’s bondholders, said in a statement Monday that, while some elements of Prepa’s proposal will require further negotiation, the plan provided a basis for further talks.
By Aaron KuriloffCreditors Give Puerto Rico Electric Power Authority a 2-Week Extension
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