Puerto Rico Electric Needs Insurers on Board by Thursday
- Prepa has until Nov. 12 to reach agreement with monolines
- Power provider is seeking to restructure $8.2 billion
The Puerto Rico Electric Power Authority needs to get insurance companies that guarantee a portion of the utility’s debt against default to endorse a conditional restructuring agreement by Thursday to avoid the risk of the deal with bondholders falling apart.
If MBIA Inc., Assured Guaranty Ltd. and Syncora Guarantee Inc. don’t sign on to the debt exchange finalized with some investors last week, then the utility known as Prepa, its fuel-line lenders and the bondholder group will work to implement a recovery plan “through a mechanism to be agreed among the parties that may include, without limitation, a judicial process, including an enforcement proceeding under applicable law,” according to the Nov. 5 agreement posted on the Municipal Securities Rulemaking Board’s website.