Puerto Rico Electric Extends AlixPartners Pact for $6.7 Millionby
Agency to spend a total of $43.5 million on AlixPartners
Power utility is seeking to restructure $9 billion of debt
Puerto Rico’s main electricity provider plans to pay restructuring adviser AlixPartners LLP an additional $6.7 million in the next four months to assist the utility as it seeks to reduce $9 billion of debt.
The Puerto Rico Electric Power Authority agreed to extend through Dec. 15 a contract with New York-based AlixPartners, Harry Rodriguez, president of the utility’s board of directors, said in a statement Monday. Lisa Donahue, a managing director at the company, will continue to serve as chief restructuring officer of Prepa, as the utility’s known. The power provider’s creditors in December agreed to a 15 percent loss on their securities through a bond exchange.
“AlixPartners will remain with Prepa leading the restructuring process and ultimately secure a sustainable capital structure and long-term business plan,” Rodriguez said in the statement. “It is important for Prepa to keep the continuity and forward movement of the process uninterrupted at this time.”
AlixPartners’s contracts with the utility total about $43.5 million, including the latest extension, since it began working with Prepa in September 2014, according to Rodriguez. The adviser has helped Prepa gain about $202 million in recurring savings and $212 million in one-time cash relief, Rodriguez said.