Puerto Rico Electric Power Authority Gets Two Week Extension

Puerto Rico Electric Power Authority Gets Two Week Extension

Bloomberg Business is reporting that the Puerto Rico Electric Power Authority (“PREPA”) has obtained a two-week extension from its creditors, so that it can attempt to sort out its finances.

The extension runs through June 18, so that PREPA can continue talks with bond holders and banks.  The agency has approximately $9 billion of outstanding debts and has been in talks with its creditors since last summer.  This marks the 4^th time that deadlines have been extended, although there is some indication that a number of the creditors are running out of patience with PREPA.

Bloomberg notes that, were PREPA to be able to effect a formal restructuring, it would be the “largest ever in the municipal-bond market.”

You can find out what led to Puerto Rico Electric Power Authority’s extension here, and even further back in time here.

Are you a creditor in a bankruptcy?  Have you been sued by a bankrupt?  If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.