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Puerto Rico Electric Utility Wins Extension From Bondholders

  • Forbearance contract deadline delayed by two weeks to Oct. 15
  • Prepa is seeking to restructure $8.3 billion of debt
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Puerto Rico’s main electric provider won a two-week extension from bondholders to negotiate how to restructure $8.3 billion of debt.

Investors holding about 35 percent of the utility’s debt and its fuel lenders agreed to delay until Oct. 15 the expiration date on an agreement that was set to end Thursday, Lisa Donahue, the power provider’s chief restructuring officer, said in a statement. The contract, called a forbearance agreement,  keeps discussions out of court. The parties first signed the accord in August 2014. It is the ninth extension.