Citibank has sold a $146 million loan it had with the Puerto Rico Electric Power Authority (PREPA) to a distressed debt investment firm, two sources said yesterday, in a sign of the growing uncertainty over the utility's finances, Reuters reported yesterday. PREPA's bank lenders and other bondholders are disputing who has priority in loan repayments, said one of the sources, who are familiar with the utility's ongoing, private debt restructuring talks and requested anonymity. Citi sold its loan to Solus Alternative Asset Management, the sources said. Solus replaced Citi in an April 30 forbearance agreement with PREPA's lenders posted on the website of Puerto Rico's Government Development Bank.
