The heavily indebted Puerto Rican Electric Power Authority (PREPA) has received a reprieve from creditors that will give it until Wednesday to unveil a log-awaited restructuring plan.
The state-owned company, which has more than $9 billion in debts, missed a deadline last August to make a $671 million principal and interest payment to several of its banks.
Although that could have placed the utility into default and a possible court-involved bankruptcy restructuring, most of PREPA’s creditors agreed to extend temporary forbearance on its loans instead.
The company, under the direction of a new chief restructuring officer, Lisa Donahue, was supposed to have completed a multi-year restructuring plan by March 31.
Ms. Donahue said late last month that the company would require more time and the creditors allowed it, keeping the forbearance agreement in place until at least April 15, according to Reuters.
A $400 million interest and principal payment on PREPA’s loans and bonds is due by June.
See the April 9, 2015 edition for full coverage.
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