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Bondholders offer $2B boost for Puerto Rico power company

Bondholders offer Puerto Rico power company $2B to boost finances, infrastructure

Bondholders offer $2B boost for Puerto Rico power company

SAN JUAN, Puerto Rico (AP) -- A group of U.S. bondholders is offering $2 billion to help boost the finances and infrastructure of Puerto Rico's power company amid fears it will go bankrupt.

Wednesday's announcement comes just days after Puerto Rico's government obtained a two-week extension from creditors as it once again delayed a repayment of nearly $700 million while the company prepares for a potential restructuring. The Electric Energy Authority holds nearly $9 billion in debt and owes investors some $400 million by July.

Bondholders said the $2 billion would be used for infrastructure investment so that the company can generate power at a lower rate and stabilize its finances. They stressed the money will not be used for an operational restructuring plan.

Government officials did not immediately return requests for comment.

Updated : 2021-09-24 04:30 GMT+08:00