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Puerto Rico's PREPA again extends creditor agreements
October 31, 2015 / 1:37 AM / 2 years ago

Puerto Rico's PREPA again extends creditor agreements

Oct 30 (Reuters) - Puerto Rico’s debt-laden power utility, PREPA, has again extended forbearance agreements with bondholders and lenders that will allow it to keep negotiating a restructuring deal with other creditors, it said on Friday.

PREPA, facing more than $8 billion in debt, said in a statement it extended through Nov. 3 an agreement that was to expire Friday night, to finalize its agreements with the forbearing creditors and continue discussions with its monoline bond insurers.

The lenders and bondholders who signed the extension have already agreed to a restructuring deal with PREPA, but the agency needs the support of bond insurers like Assured Guaranty and MBIA’s National Public Finance Guarantee for the deal to work.

PREPA said it will use the extra four-day window to try to nail down terms with the insurers, who are not parties to the forbearance agreement and could potentially sue PREPA or push for a financial receiver. (Reporting by Nick Brown in San Juan, Puerto Rico, and Ismail Shakil in Bengaluru)

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