Investors in the debt of Puerto Rico’s power utility have offered a 30-day extension of a creditor agreement that expires Thursday, according to a person with knowledge of the situation.
Prepa, as the Puerto Rico Electric Power Authority is known, has $8.6 billion of securities. Under the bondholder offer, the electricity provider would give creditors a restructuring plan by June 1, said the person, who requested anonymity because an agreement hasn’t been reached.
Bondholders, insurance companies and banks signed a contract with Prepa in August that put off default. The group has extended the agreement twice for additional 15-day periods.
“Prepa will issue a statement about a forbearance extension at the appropriate time, but will not be answering questions prior to the statement,” Yenis Abraham Gonzalez, a spokeswoman for Prepa, said in an e-mail.