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Puerto Rico Reaches Restructuring Deal With Utility Bondholders

  • Debt swap deal with bondholder group backed by U.S. board
  • Oversight board chief hails deal as ‘important milestone’
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A Tale of Two Puerto Ricos

Puerto Rico’s electric company reached a preliminary agreement with bondholders on a deal that will allow it to restructure its debt, marking a major advance in the utility’s efforts to emerge from bankruptcy.

The pact, reached by the island’s government, the territory’s federal oversight board and a key group of investors, would slash the debt service bills of the Puerto Rico Electric Power Authority more deeply than the agreement the board rejected a year ago. The board said in a statement Monday that it’s now working to finalize the deal for the power company known as Prepa.