When Puerto Rico struck a deal more than a year ago to cut the government electric company’s $9 billion debt, one group was spared the hit: bond insurers, whose guarantees the island needed to win back the faith of investors, Bloomberg News reported yesterday.
Puerto Rico in Distress
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Creditors of Puerto Rico's struggling power authority, PREPA, have presented the island's government with a counter-offer to restructure the utility's $8.9 billion in debt, Reuters reported yesterday. The U.S. territory's government was planning to review the plan ahead of a Friday deadline to finalize a restructuring deal at the utility.
Groups of Puerto Rico's creditors issued a rare joint letter late on Monday opposing a plan designed to steer the island out of financial crisis, stoking friction between the U.S. territory, its investors and the board tasked with managing its finances, Reuters reported yesterday.
Puerto Rico’s U.S. overseers threw support behind Governor Ricardo Rossello’s push for deeper concessions in the electric utility’s debt-cutting agreement, setting up a clash with creditors who said it jeopardizes the broader effort to restructure the territory’s $70 billion debt, Bloomberg News reported yesterday.