A federal control board overseeing Puerto Rico’s finances has offered a $3 billion settlement to bondholders in a push to restructure more than $10 billion in debt held by the U.S. territory’s power company.
Background
Puerto Rico’s Electric Power Authority has been trying to restructure its debt for roughly a decade, after the U.S. territory announced in 2015 that it was unable to pay its more than $70 billion debt load.
The board is proposing paying cash and offering the issuance of new bonds to bondholders that have not settled and are seeking some $8.5 billion in claims. The proposed settlement represents $1.4 billion more than previously offered.
According to Robert F. Mujica Jr., the board’s executive director, restructuring the company’s debt is essential to Puerto Rico’s recovery and will provide reliable, affordable electricity and new investment for residents and businesses.
Original reporting: KTBS 3 (Shreveport) — read the source article.
