Puerto Rico Electric Talks Proceed After Debt Plan Expires
- Fuel lenders enter into forbearance agreement through Feb. 12
- Governor warns of blackouts if utility can't purchase fuel
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Puerto Rico’s main electricity provider and its bondholders are continuing negotiations to restructure almost $9 million in debt after failing to meet a deadline Friday that caused a tentative pact reached last month to be terminated.
The restructuring support agreement between the Puerto Rico Electric Power Authority and its creditors expired after lawmakers failed to pass legislation by Friday to enable Prepa, as the agency’s known, to lower its obligations and implement a new customer surcharge. In a sign of progress, banks who finance its fuel purchases and the utility entered into a forbearance agreement on Sunday that keeps their negotiations out of court through Feb. 12.