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(Bloomberg) — Puerto Rico’s monetary oversight board is amending its plan to cut back $9 billion of Electrical Energy Authority debt to replicate steeper-than-expected declines in vitality consumption.
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The federally appointed oversight board notified the court docket of its intent to change the restructuring plan after receiving new information from Prepa, because the utility’s identified, and Luma Power, which operates the ability grid, based on a doc filed Saturday with the court docket. The debt plan would lower Prepa’s obligations right down to $5.68 billion.
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The modifications might delay a scheduled affirmation listening to subsequent month on the restructuring plan. It additionally indicators the oversight board might scale back its $5.68 billion proposal of latest utility debt, an quantity that bondholders have already mentioned is simply too low.
Prepa has been in chapter for nearly six years and is the principle provider of electrical energy on the island.
New information present that vitality consumption is declining greater than anticipated, Martin Bienenstock, a lawyer for the oversight board, mentioned earlier this month throughout a court docket listening to. The board and its monetary advisers are reviewing “whether or not the brand new load data modifications projections for the long run that might influence debt sustainability,” Bienenstock mentioned throughout the listening to.
The oversight board was unable to certify Prepa’s multiyear monetary plan by Friday due to the brand new information, however plans to approve it by June 23, based on Saturday’s court docket submitting. That fiscal framework helps to determine how a lot the utility can repay over time.
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