PREPA extends deadline for restructuring support agreement to Dec. 17

NEW YORK (Reuters) - Puerto Rico Electric Power Authority (PREPA), the island's debt-laden power utility, on Tuesday announced it again amended terms of a debt restructuring agreement to allow a continuation of discussions with certain creditors.

"The amendment extends a number of the automatic termination events set forth in the RSA (restructuring support agreement) to Dec. 17, 2015, including the date for reaching an agreement with the monoline bond insurers and the date for enactment of the PREPA Revitalization Act," the firm said in a statement.

PREPA, facing more than $8 billion in debt, has already reached a deal with the Ad Hoc Group of bondholders, comprising traditional municipal bond investors and hedge funds, fuel line lenders and the Government Development Bank for Puerto Rico.

However, it has not reached an agreement with the monoline bond insurers such as Assured Guaranty and MBIA's National Public Finance Guarantee for the deal to work.

If they cannot work out an agreement the proposed restructuring transaction would be in jeopardy of not being completed.

"PREPA will use the extension to continue discussions with the monoline bond insurers and supporting creditors, while the legislative process to approve the PREPA Revitalization Act continues," the company's statement said.

(Reporting By Daniel Bases; Editing by Andrea Ricci)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Chinese data storage firm makes tepid Hong Kong debut after $900 million share sale
• Ukraine's prosecutor general submits resignation citing political conflict
• Japan upgrades Q2 GDP on slight capex improvement