Puerto Rico in Distress

ABI Analysis

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.

More than a dozen U.S. state attorneys general are backing an appeal by creditors of the Puerto Rico Electric Power Authority seeking to challenge a bankruptcy ruling that sharply limits their revenue claims, Bloomberg News reported. U.S.