Puerto Rico’s junk-rated electric utility gained 15 more days to negotiate with creditors as it struggles to repair its finances, Bloomberg News reported yesterday. The Electric Power Authority, called Prepa, said Wednesday that creditors agreed to extend to April 30 an accord that pushes off default. It’s the second time that creditors consented to continue the contract, which was set to expire yesterday. The agreement keeps lenders from moving to collect on debt and gives the agency more time to create a plan. The utility, bondholders, insurance companies and banks first entered into agreements in August after Prepa used reserves to pay investors. “The creditors’ agreement to our forbearance proposal demonstrates that we are making progress and there is merit to continuing conversations to find feasible solutions that will transform Prepa,” said Lisa Donahue, Prepa’s chief restructuring officer.
