BlackRock-Backed Puerto Rico Utility Deal Would Cut Debt by 75%

Puerto Rico’s bankrupt power utility has reached a deal with BlackRock Financial Management and Nuveen Asset Management to slash its debt load by about 75%, even as other creditors have said they oppose the accord.

The island’s federally-appointed financial oversight board, which is managing Puerto Rico Electric Power Authority’s bankruptcy, struck the agreement with a new group of investors holding $2.4 billion of utility debt including BlackRock, Nuveen, Franklin Advisers, Taconic Capital Advisors and Whitebox Advisors. The deal aims to reduce combined claims of $10 billion down to about $2.5 billion of new bonds.

Other creditors including GoldenTree ...