Puerto Rico in Distress

ABI Analysis

Candidates are being interviewed this week for the position of chief restructuring officer at Puerto Rico's struggling power authority, Reuters reported yesterday. The Puerto Rico Electric Power Authority (PREPA) must hire a CRO by Sept. 8 under an agreement with creditors as it works on developing a restructuring plan to revive the utility, which has more than $9 billion in debt.

The Puerto Rico Electric Power Authority (Prepa) struck a deal with bondholders yesterday to develop a restructuring plan to revive the debt-stricken utility as it won an extension of vital lines of credit it uses to buy oil, Reuters reported yesterday. Prepa is widely viewed to be in the weakest condition of Puerto Rico's highway, water and electricity agencies.

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.

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.

Other Resources

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.