Puerto Rico in Distress

ABI Analysis

Puerto Rico ended talks with power revenue bondholders without a negotiated deal on $9 billion in debt, leaving its bankrupt electric utility once again without a clear path out of court protection, WSJ Pro Bankruptcy reported. The mediated talks are expected to expire Friday, people familiar with the matter said.

An international banker accused of bribing Puerto Rico’s then-governor to undermine an investigation into his institution turned himself in on Wednesday, almost a month after he was charged in federal court, the Associated Press reported.

Persistent power outages and threats from Puerto Rico’s government prompted a company that operates the island’s transmission and distribution system to announce yesterday that it would dedicate more resources and crews to improve service, the Associated Press reported. The move came just hours after the U.S.

Puerto Rico’s Electric Power Authority and its creditors will keep negotiating through Sept. 9 to strike a potential deal to reduce $9 billion of debt, Bloomberg News reported. A mediation team that manages the debt talks said it needs more time beyond an Aug. 15 deadline for discussions, according to a court filing yesterday.

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.