A federal decide has tentatively accredited a portion of the most recent plan to restructure $10 billion of debt owed by Puerto Rico’s energy firm amid heated negotiations between collectors and the U.S. territory’s authorities
ByThe Related Press
November 14, 2023, 5:53 PM
SAN JUAN, Puerto Rico — A federal decide on Tuesday tentatively accredited a portion of the most recent plan to restructure $10 billion of debt owed by Puerto Rico’s energy firm amid heated negotiations between collectors and the U.S. territory’s authorities.
The general debt restructuring plan has been amended 4 instances this 12 months by a federal management board that oversees Puerto Rico’s funds. A affirmation listening to is ready for March 2024 as numerous bondholders proceed to oppose the plan.
The board didn’t have instant touch upon the decide’s resolution relating to the plan’s disclosure assertion, which requires modifications earlier than bondholders vote on it. The choice was issued after an hours-long listening to that drew protesters to the courthouse who’re against electrical invoice will increase outlined within the plan.
The chapter of Puerto Rico’s Electrical Energy Authority has dragged on for years amid intense debate on how one can restructure its debt — the most important of any authorities company within the U.S. territory.
Quite a few restructuring makes an attempt have failed, with a number of collectors looking for to recuperate more cash than what the plan at present gives. The plan was amended for a 3rd time in August and a fourth time over the weekend.
The most recent proposal seeks to chop the ability firm’s debt by almost 80%, to some $2.5 billion. If accredited, it’s anticipated to result in will increase in residential and business energy payments that already are among the many highest of any U.S. jurisdiction.
The facility firm is Puerto Rico’s solely company that has but to restructure its debt for the reason that territory’s authorities introduced in 2015 that it was unable to pay its greater than $70 billion public debt, collected via a long time of mismanagement, corruption and extreme borrowing. In 2017, Puerto Rico filed for the most important U.S. municipal chapter in historical past.