Puerto Rico Utility Investors Said to Offer 30-Day Extension

Updated on

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.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE