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Puerto Rico Board Rejects Power Utility Debt Restructuring

  • Electric agency owes investors $423 million on July 1
  • Board’s action moves power utility closer to bankruptcy
Bloomberg business news

George Pataki Says Puerto Rico Can Pay Its Debts

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A deal to restructure $9 billion of Puerto Rico electric debt fell apart as a federal control board rejected the accord Tuesday, pushing the island’s main power utility closer to a potential bankruptcy.

A federal oversight panel tasked with fixing the commonwealth’s $74 billion debt crisis shot down in executive session the plan to reduce Puerto Rico Electric Power Authority’s obligations. Prepa, as the utility’s known, and its creditors struck the deal 18 months ago, before Congress created the oversight board last year.