Puerto Rico Electric Extends Bondholder Restructuring Pact
- New deadline set for Nov. 20 as lawmakers work on bill
- Prepa needs to reach accord with insurers to exchange debt
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Puerto Rico’s main electricity provider extended an agreement with some bondholders to Nov. 20, giving the utility more time to negotiate with insurers that guarantee a portion of its debt against default.
The Puerto Rico Electric Power Authority, known as Prepa, is trying to restructure $8.2 billion of debt to reduce its costs and free up cash for plant upgrades. Investors holding about 35 percent of its debt on Nov. 5 agreed to take losses of as much as 15 percent by exchanging their bonds for new securities.