Puerto Rico Power Utility Gets Debt Restructuring Extension
- Prepa postpones bond-purchase agreement with creditors
- Power utility plan would restructure $9 billion of debt
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Puerto Rico’s main electricity provider will prolong a bond-purchase agreement with its creditors, averting a potential termination of a larger debt-restructuring deal.
The Puerto Rico Electric Power Authority and its creditors will extend the accord to the end of May 2, according to a statement Thursday from the utility. Under the pact, bondholders and insurance companies agree to buy $111 million of three-year bonds from Prepa, as the utility is known. The contract expired late Wednesday and is part of Prepa’s plan to restructure $9 billion of debt. The larger restructuring pact would end if the bond-purchase agreement failed to continue.