BlackRock, Nuveen Set to Exit Puerto Rico Utility Debt Deal (1)

The debt-cutting plan for Puerto Rico’s power utility, which has been in bankruptcy for almost a decade, is at risk of falling apart after investors including BlackRock Financial Management threatened to pull out of the deal in the wake of the Trump administration’s move to fire nearly all of the board that oversees the island’s finances.

The financial oversight board, which manages Puerto Rico Electric Power Authority’s bankruptcy, struck a deal in 2023 with BlackRock, Franklin Advisers and Nuveen Asset Management to slash about $9 billion of bonds and loans to $2.6 billion. However, an ad hoc group of hedge ...