Puerto Rico Bond Insurer Urges Board to Seek Utility Receiver

MBIA Inc.’s National Public Finance Guarantee is urging Puerto Rico’s federal board to consider putting a receiver in charge of the island’s bankrupt power utility after the electricity provider lost two chief executive officers last week amid an uproar over their salaries.

The Puerto Rico Electric Power Authority needs politically independent leadership, lawyers for the bond insurer wrote to the federal board in a letter dated July 17. Management at Prepa, as the utility’s known, fell into disarray last week as its chief executive officer resigned after four months on the job and his replacement quit one day after the ...