The Puerto Rico power utility PREPA, laden with a $9 billion debt load, has filed for a form of bankruptcy, Puerto Rico's primary fiscal agent said yesterday, Reuters reported. The Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) said that PREPA power had filed in the U.S.
Puerto Rico in Distress
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Bondholders of Puerto Rico's debt-laden power utility, PREPA, said yesterday that the agency had rejected a financing offer that might have allowed it to make a $450 million July 1 coupon payment, Reuters reported.
Puerto Rico's financial oversight board said yesterday that it was still in debt restructuring talks with creditors of the island's power utility, PREPA, a day after rejecting a proposed deal to restructure $9 billion of the utility's bonds, Reuters reported.
Puerto Rico will argue this week that it shouldn’t be treated like a broke business during the proceedings: Its residents, not creditors, should come first, Bloomberg News reported today. Government lawyers will argue with bondholders tomorrow in federal court in San Juan over what ground rules should apply in the forthcoming legal battle at the heart of the $74 billion restructuring.