Puerto Rico Power Utility May Extend Agreement With CreditorsMichelle Kaske
Puerto Rico’s power utility said it may extend an agreement with its creditors and plans to make a statement March 30.
Puerto Rico’s Electric Power Authority may need to repay $696 million in bank loans unless it can negotiate an extension to a contract with creditors that expires March 31. The junk-rated utility is in talks in New York with banks, bondholders and insurance companies to gain more time to repair its finances. The discussions will continue through the weekend, Lisa Donahue, Prepa’s chief restructuring officer, said in a statement.
“Specifics of the discussions may not be disclosed due to confidentiality agreements in place with the creditors,” Donahue said. “Prepa expects to meet with the media and make a public statement on Monday.”
Prepa has $8.6 billion of debt and faces a $400 million principal and interest payment to investors July 1.