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Puerto Rico power co. gets debt deadline extension

Bond insurers give Puerto Rico power company extension on debt deadline

Puerto Rico power co. gets debt deadline extension

SAN JUAN, Puerto Rico (AP) -- Puerto Rico's electric utility says it's been given a brief reprieve for approval of a debt restructuring deal.

The Puerto Rico Electric Power Authority says bondholders and bank lenders agreed to extend Friday's deadline to Tuesday to win approval from bond insurers.

The deal reached last month with bondholders and lenders that provides a 15 percent discount and eases payment terms.

Gov. Alejandro Garcia Padilla and other officials have said the 18-month-long negotiations show why Congress should grant Puerto Rico access to the Chapter 9 federal bankruptcy law. The power authority is the first of about a dozen entities that officials say need restructuring.

The governor announced in June the island's $72 billion debt is not payable.

Updated : 2021-07-27 23:52 GMT+08:00