Efforts to restructure Puerto Rico power company debt wobble

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Puerto Rico's power company appears destined for an even longer bankruptcy than expected after several creditors rejected a new debt restructuring plan following years of failed negotiations.

A federal control board that oversees the island’s finances filed a plan that proposes to cut by nearly half the more than $10 billion of debt held by Puerto Rico’s Electric Power Authority, the largest of any local government agency.

Board chairman David Skeel warned that residents and businesses in the U.S. territory will “shoulder the payments of this greatly reduced debt through their electricity bill.”The announcement riled many Puerto Ricans already burdened by a deep economic crisis and recent power bill increases despite chronic outages blamed in part on crumbling infrastructure resulting from decades of neglect and mismanagement.

Skeel noted that no agreement was reached with the holders and guarantors of $7.6 billion worth of power company bonds, adding that the plan would allow them to join a settlement class as one option.

 

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Puerto Rico is a part of this country I think and we still give them no support did you expect anything else

They have billions of US dollars waiting to be spent on a new grid.

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