Puerto Rico’s junk-rated power authority got a two-week extension from creditors that will give it more time to sort out its finances, Bloomberg News reported today. The accord allows the Puerto Rico Electric Power Authority (PREPA) to negotiate with bondholders, banks and debt insurers outside of court on ways to revamp its operations and finances. Talks have been going on since August. It’s the fourth time for creditors to consent to prolong the accord, which was set to expire yesterday. PREPA has $9 billion of obligations and has breached bond contracts by using reserves for debt payments.
