Puerto Rican power utility PREPA and its creditors have reached a new deal to restructure $8.9 billion in debt through new bonds with longer maturities, the U.S. territory's government announced yesterday, Reuters reported. The agreement, which must be approved by Puerto Rico's federally appointed oversight board, could save $2.2 billion in debt servicing costs over five years, Governor Ricardo Rossello's administration said in a statement. That is $1.5 billion more than a prior pending deal between the parties would have saved, the government said. The sides agreed to extend until April 13 the deadline to implement the deal. Read more.
For more news and analysis of Puerto Rico's debt crisis, be sure to visit ABI's "Puerto Rico in Distress" webpage.
