Creditors of debt-ridden Puerto Rican power utility Autoridad de Energia Electrica have given the company just over two weeks to negotiate a turnaround plan that guarantees its survival and the recovery of their investment.
“We’re pleased that the creditors granted an extension to the existing forbearance agreements,” Lisa Donahue, the chief restructuring officer of AEE, which is also known as The Puerto Rico Electric Power Authority, or PREPA, was quoted as saying in a brief news release Friday.
“We continue to work with creditors towards a consensual resolution and the transformation of PREPA for the benefit of all stakeholders,” she added.
AEE said in the release that the creditors had granted an extension until June 18 “in light of ongoing negotiations.”
The utility has more than $9 billion in debt that it cannot repay under the current terms and conditions while also continuing to provide service in Puerto Rico, where it has a monopoly on electricity generation, power transmission and power distribution.
The company wants its creditors to accept a five-year debt repayment delay that would allow it to devote more funds to a modernization plan aimed at improving service and boosting revenues.
The utility’s bondholders include several U.S. hedge funds.
Creditors Give Puerto Rico Utility until June 18 to Negotiate Turnaround Plan
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