Bankruptcy Law News

Lawmakers Urge Court to Reject Puerto Rico Utility Debt Plan

Oct. 31, 2019, 4:13 PM

Federal lawmakers are asking Puerto Rico’s bankruptcy judge to reject a tentative deal to restructure more than $8 billion of electric utility debt because they say the plan would hurt the island’s economy.

  • Rep. Raul Grijalva, Rep. Nydia Velazquez and Rep. Darren Soto, all Democrats, filed a brief to the court opposing a restructuring support agreement between the Puerto Rico Electric Power Authority, called Prepa, and its creditors
  • The potential debt deal includes proposed electric utility rate hikes to help repay Prepa’s obligations
    • The lawmakers say the plan doesn’t cut Prepa’s debt enough and may result in...

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