Puerto Rico Eyes Deal With BlackRock and Taconic Capital on $9 Billion Utility Debt

  • Island power utility seeks to restructure $9 billion of debt
  • Puerto Rico utility has Friday deadline to file a debt plan
PREPA employees fix power lines in Santurce, San Juan.Photographer: Xavier Garcia/Bloomberg
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Puerto Rico’s bankrupt utility, which needs to restructure nearly $9 billion of debt, is closing in on a deal with at least two bondholders as soon as this Friday.

BlackRock Financial Management and Taconic Capital Advisors are expected to reach a settlement with the island’s financial oversight board by a Friday deadline on how to restructure the debt of Puerto Rico’s Electric Power Authority or Prepa, according to a person familiar with the negotiations.