Welcome
Bankruptcy Law News

Puerto Rico Utility Restructuring Deal Faces Creditor Blowback

Oct. 31, 2019, 8:17 PM

Creditors in Puerto Rico’s bankruptcy-like cases urged a federal judge to reject a proposal to restructure about $8.5 billion of the territory’s electric utility bonds, charging the deal improperly elevates the bondholders’ security interest.

The restructuring agreement to cut the Puerto Rico Electric Power Authority’s debt by roughly $3 billion through a bond exchange would bind the island to a “deeply flawed” deal, according to an Oct. 31 filing by a committee of unsecured creditors.

The committee accused the Puerto Rico government and the federal oversight board steering the island’s financial overhaul of giving PREPA’s investors an overly rich deal...

To read the full article log in. To learn more about a subscription click here.