Bankruptcy Law News

Puerto Rico Board Seeks Approval of Electric Utility Bond Settlement

May 13, 2019, 9:30 PM

The federal board overseeing Puerto Rico’s financial recovery asked May 10 for court approval of a deal that would restructure the bond debt of the island territory’s electrical utility.

The Financial Oversight and Management Board, appointed under the 2016 law creating the blueprint for Puerto Rico’s reconstruction, also asked the court on May 10 to reject some creditors’ attempt to have a receiver take over the utility, the Puerto Rico Electric Power Authority, or Prepa. Having a receiver wouldn’t benefit all creditors given it would negate the bond restructuring deal that a significant number of creditors now supports, the board...

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