Potential changes to Puerto Rico Electric Power Authority’s debt-cutting plan have lost support of National Public Finance Guarantee after an appeals court expanded creditors’ allowable claims, Bloomberg News reported.
Puerto Rico in Distress
Video Features
ABI Analysis
Prof. David Skeel, chairman of the federal control board that oversees Puerto Rico’s finances, announced on Wednesday that he is stepping down as the U.S. territory struggles to restructure more than $9 billion in debt held by its troubled power company, the Associated Press reported.
A group of bondholders and insurers of Puerto Rico Electric Power Authority debt extended a cooperation agreement to oppose the bankrupt utility’s proposal to drastically reduce its obligations, Bloomberg News reported. Assured Guaranty, Syncora Guarantee and GoldenTree Asset Management, along with an ad hoc group of investors including Invesco Advisers Inc.
The private operator of Puerto Rico’s power grid confirmed Monday the deferral of $65 million worth of maintenance and improvement projects in the U.S. territory, with some repairs postponed for at least a year because of budget constraints, putting at risk the already troubled grid — and sparking a widespread outcry, the Associated Press reported.