Puerto Rico’s top utility offered $2bn bailout

Puerto Rico’s debt-laden power authority has been offered $2bn in new financing by creditors, including $1.2bn to fund a new natural gas operation, in exchange for assurances that it would repay its debt.

Puerto Rico Electric Power Authority (PREPA) caters for over 1.5 million customers through running 15 oil, coal and renewable power plants throughout Puerto Rico.
Puerto Rico Electric Power Authority (PREPA)
Reuters reports that the utility has not yet accepted the proposal.

Should they refuse, Reuters reports that a messy default could affect the US municipal bond market.

Burdened by $9 billion in debt, PREPA has been in financial restructuring talks for months.

PREPA’s Ad Hoc group of creditors, which includes OppenheimerFunds, Franklin Templeton, BlueMountain Capital and others, offered the $2 billion financing during negotiations with the utility to extend a forbearance agreement set to lapse on Tuesday.

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