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Puerto Rico Utility Inches Toward Litigation to Cut Debt (1)

Sept. 19, 2022, 2:47 PM

Puerto Rico’s bankrupt power utility and bondholders may face off in court Wednesday in the wake of Hurricane Fiona’s damage after mediation talks over the agency’s $9 billion debt restructuring ended last week without a deal.

US District Court Judge Laura Taylor Swain ordered a hearing for Wednesday on the commonwealth’s push to start litigation after months of court-supervised mediation failed to produce a debt-cutting plan for Puerto Rico’s Electric Power Authority, called Prepa. The island’s financial oversight board filed a potential litigation schedule late Friday even though it still wants to continue negotiations with creditors.

The breakdown in ...