Puerto Rico Utility Bondholders Seek Bigger Bankruptcy Payouts
- Court should consider new power-use forecasts, creditors say
- Utility is seeking to cut $10 billion of obligations by 75%
Puerto Rico Electric Power Authority employees fix power lines in Santurce, Puerto Rico.
Photographer: Xavier Garcia/BloombergBondholders of Puerto Rico’s bankrupt power utility are pushing for the court to increase what they stand to recover as new projections show the company’s revenue is likely to outstrip expectations due to higher electricity consumption.
US District Court Judge Laura Taylor Swain is reviewing a restructuring plan that would cut by about 75% the obligations of Puerto Rico’s Electric Power Authority, called Prepa. Assured Guaranty Corp., a group of ad hoc bondholders, GoldenTree Asset Management and other creditors want Swain to also consider updated energy consumption estimates that indicate an increase in demand compared to prior projections, according to an urgent motion filed to the court late Monday.