Puerto Rico utility gets extra time to work out debt issues

SAN JUAN, Puerto Rico, Oct. 15, 2015 /PRNewswire/ — The Puerto Rico Electric Power Authority (PREPA), Puerto Rico’s publicly owned electricity provider, announced today that it has entered into agreements with the ad hoc group of bondholders and fuel line lenders to extend its forbearance agreements to October 22, 2015.  PREPA will use the extension to continue discussions with its monoline bond insurers and finalize its agreements with the forbearing creditors.

“PREPA continues to make significant progress in its transformation efforts and the extension of our forbearance agreements provides us additional time to work towards an agreement with all of our key creditors,” said Lisa Donahue, Chief Restructuring Officer of PREPA.  “We are working to accomplish a comprehensive transformation of PREPA that shares the burden among key stakeholders to address PREPA’s finances and to overhaul its operations to ensure that Puerto Rico has the energy infrastructure necessary to thrive for generations to come.”