Talks to restructure Puerto Rico power company debt fail

Source: Associated Press

Talks to restructure Puerto Rico power company debt fail

By DÁNICA COTO
September 17, 2022

HAVANA (AP) — Mediation talks to restructure more than $9 billion in debt held by Puerto Rico’s power company failed, officials announced Saturday, raising concerns about the future of the bankrupt government agency.

A federal control board that oversees Puerto Rico’s finances said the impasse with bondholders means it would resume litigation against them in an attempt to restructure the debt, warning that any cost associated with debt repayment would be passed along to consumers.

Gov. Pedro Pierluisi said the mediation did not achieve the desired outcome: “My administration cannot accept a deal that unduly strains the wallets of our hard-working families, or the resources businesses need to fuel our economy and create and maintain jobs on the island.”

In a press conference on Saturday, Pierluisi said the power company will remain in a state of bankruptcy given pending litigations.

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Read more: https://apnews.com/article/caribbean-economy-puerto-rico-pedro-pierluisi-c7472f4e779e797b502c95cadb59d124