Puerto Rico in Distress

ABI Analysis

Bondholders of Puerto Rico’s bankrupt power utility are pushing for the court to increase what they stand to recover as new projections show the company’s revenue is likely to outstrip expectations due to higher electricity consumption, Bloomberg News reported. U.S.

The debt-restructuring plan put forward by Puerto Rico’s bankrupt power authority includes a type of financing common among tobacco-settlement debt that may serve as a blueprint for other utilities seeking to raise money to meet capital needs, Bloomberg News reported.

The judge overseeing the bankruptcy of Puerto Rico’s Electric Power Authority is keeping a planned March 4 confirmation hearing, denying a request from some creditors to postpone a discussion of the utility’s debt-cutting plan on that date, Bloomberg News reported.

Puerto Rico’s bankrupt power utility and its creditors squared off in court Monday on whether bondholders have a legal right to the electricity provider’s future revenue, Bloomberg News reported.


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.