Puerto Rico's cash-strapped electric power authority faces a key deadline today to extend lines of credit with banks or face a possible restructuring of about $9 billion in total debt, the Wall Street Journal reported today.
Puerto Rico in Distress
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Fitch Ratings said yesterday that allowing Puerto Rico’s public corporations to file for chapter 9 protection would benefit holders of the agencies’ debt as well as the commonwealth, Bloomberg News reported yesterday. Pedro Pierluisi, a Democrat who represents Puerto Rico in the U.S. House, introduced a measure in July that would let the island’s agencies restructure debt in court. U.S.
Puerto Rico’s government-owned corporations could file for bankruptcy protection under a bill proposed in the U.S. House of Representatives by the delegate from the Caribbean territory, which is struggling to pay $73 billion in debt, Bloomberg News reported yesterday.
Lenders to Puerto Rico’s electric power authority are giving the beleaguered utility another two weeks before it has to make past-due payments on its lines of credit, the New York Times DealBook blog reported yesterday.