Puerto Rico Utility Fails to Extend Contract With Insurers
- Prepa gets extension from bondholders through Oct. 1
- Prepa's fuel-line lenders delay deadline to Sept. 25
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Puerto Rico’s main electricity provider failed to extend a contract with its bond insurers that has given the power company time to negotiate a way to restructure its $8.3 billion of debt.
The Electric Power Authority’s failure to extend the forbearance agreement with the insurers marks a setback for the utility, which earlier this month struck a tentative deal with some of its bondholders to reduce its debt load. Insurers that guarantee $2.5 billion of the utility’s debt balked at extending the talks. The forbearance keeps negotiations outside of court.