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.


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.