Puerto Rico in Distress

ABI Analysis

The judge overseeing the bankruptcy of Puerto Rico’s electric utility directed the parties to reach a consensual debt-cutting deal through mediation and put a hold on most legal filings for at least 60 days to force the borrower and its creditors to focus on their negotiations, Bloomberg News reported. U.S.

A subsidiary of Spanish highway operator Abertis is considering borrowing $424 million to fund capital projects for four Puerto Rico toll roads, Bloomberg News reported. The Public Finance Authority, a Wisconsin-based issuer, approved the bond sale for Puerto Rico Toll Roads LLC, at a June 26th board meeting.

Potential changes to Puerto Rico Electric Power Authority’s debt-cutting plan have lost support of National Public Finance Guarantee after an appeals court expanded creditors’ allowable claims, Bloomberg News reported.

Prof. David Skeel, chairman of the federal control board that oversees Puerto Rico’s finances, announced on Wednesday that he is stepping down as the U.S. territory struggles to restructure more than $9 billion in debt held by its troubled power company, the Associated Press reported.