PREPA extends deadline for restructuring support agreement

Fri Dec 18, 2015 8:21am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

Dec 18 (Reuters) - Puerto Rico Electric Power Authority (PREPA), the island's debt-laden power utility, said it had extended to Friday a restructuring support agreement to allow a continuation of talks with its monoline bond insurers and supporting creditors.

PREPA, facing more than $8 billion in debt, had said last Tuesday that it had extended the deadline for the restructuring support agreement to Dec. 17.

The company reached a deal in September under which certain bondholders and lenders agreed to accept 15 percent repayment reductions in exchange for new, healthier bonds.

However, it has not reached an agreement with the monoline bond insurers such as Assured Guaranty and MBIA Inc's National Public Finance Guarantee for the deal to work.

PREPA has extended the deadline a handful of times before for reaching agreement with its monoline bond insurers. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Sriraj Kalluvila)