A federal judge on Wednesday ordered a fresh round of mediation talks aimed at restructuring more than $8 billion in debt held by Puerto Rico’s power company as it struggles to recover from Hurricane Fiona, the Associated Press reported. In addition, U.S. District Court Judge Laura Taylor Swain allowed a federal control board that oversees the island’s finances to go to court to determine how much money bondholders should receive as they seek to recover their investments. The board warned earlier that any expenses linked to debt repayment would be passed along to the power company’s 1.47 million clients. The board also was ordered to file a debt-restructuring plan for the island’s Electric Power Authority by Dec. 1, with a confirmation hearing scheduled for mid-2023. The board praised the ruling in a brief statement, saying it is calculated to get major disputed legal issues resolved in the shortest possible time: “Simultaneous litigation and mediation facilitates resolutions for all constituencies.”
