Puerto Rico's power authority gets credit lifeline

Thu Aug 14, 2014 6:40pm EDT
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Aug 14 (Reuters) - Puerto Rico's electric power authority PREPA on Thursday received an extension of vital lines of credit which it uses to buy oil and agreed with bondholders to develop a restructuring plan to revive the debt-stricken utility.

PREPA, with around $9 billion of debt, is widely viewed to be in the weakest condition of Puerto Rico's highway, water and electricity agencies. A restructuring of its debt, moving to cheaper fuel and cutting jobs are seen as vital to its longer-term health.

Under the terms of Thursday's deal, PREPA must deliver a full debt restructuring plan by March 2, it said in a statement.

PREPA was on the hook for $146 million from Citigroup Inc and $525 million from a consortium led by Scotiabank . PREPA had already gained a two-week extension to the credit lines that expired on Thursday. (Reporting by Ed Krudy, Luciana Lopez and Megan Davies, editing by G Crosse)