Puerto Rico Creditors Appeal Order Dismissing Claim Objection (1)

Creditors of Puerto Rico’s electric utility are appealing a federal judge’s ruling that they can’t object to the utility bondholders’ claims until the judge rules on the island government’s settlement with the bondholders.

The Puerto Rico Electric Power Authority reached a settlement with its bondholders to restructure about $8.5 billion of PREPA bonds by giving the bondholders about $7.3 billion.

The committee of unsecured creditors filed its objection in October to the settlement, saying PREPA would pay more than $20 billion “over the next several decades.”

The committee also filed a separate objection to the bondholders’ $8.5 billion claim. In ...