The Puerto Rico Electric Power Authority said Monday that it reached agreements with banks allowing it to defer certain payments until the end of the month, giving breathing space to the cash-strapped utility, the Wall Street Journal reported today. The power authority said that it "may delay certain payments currently due until July 31, 2014," according to a news release yesterday.
Puerto Rico in Distress
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Creditors to Puerto Rico's electricity provider were given a slight respite yesterday when the bonds' trustee made a scheduled payment, but the U.S. municipal bond market remained worried the Puerto Rico Electric Power Authority will soon use a new bankruptcy-like process to restructure its debts, Reuters reported yesterday.
Moody's Investors Service said yesterday that Puerto Rico's new debt restructuring law will increase the default risk for public corporations, Reuters reported yesterday.
A pair of Wall Street investment firms is challenging Puerto Rico's new law allowing some public agencies to restructure their debt, saying that it violates the U.S. Constitution, the Wall Street Journal reported today. Funds managed by Franklin Templeton Investments and OppenheimerFunds Inc. asked the U.S.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.