Puerto Rico Electric Reviews $1 Million Public Relations Pactby
$1 million contract entered into with J. Frank Associates
Prepa seeking concessions of as much as 15% from creditors
The Puerto Rico Electric Power Authority, which is asking creditors to accept losses on bond payments, said its board will review a $1 million contract for public relations work to make sure it complies with the commonwealth’s laws.
The island’s main electric supplier, known as Prepa, is expected to complete the review of the terms with J. Frank Associates LLC next week, said Jose Echevarria, a San Juan-based spokesman for the utility. The six-month contract with the New York-based firm began in October.
The authority is in talks with creditors to restructure $8.2 billion of debt to reduce its costs and free up cash for plant upgrades. Under an agreement reached with about 35 percent of bondholders, creditors would take losses of as much as 15 percent on the face value of their securities.