Monday, June 26, 2017

Date for Puerto Rico fiscal board to certify power utility accord extended

By on June 17, 2017

FAFAA Director Gerardo Portela and oversight board Chairman José Carrión III (Juan J. Rodríguez / CB)

SAN JUAN – The Fiscal Agency and Financial Advisory Authority (FAFAA by its Spanish acronym), the Puerto Rico Electric Power Authority (Prepa) and its creditor constituencies have agreed to extend the June 16 milestone for the Financial Oversight and Management Board to certify the public utility’s restructuring support agreement (RSA) until June 23.

The announcement was made by FAFAA Executive Director Gerardo Portela in a written statement issued  Saturday.

It is the third time in two weeks that Prepa and its creditors have agreed to extend the deadline. The June 9 deadline to have the island’s oversight board approve the most recent version of the RSA had been pushed to June 16 and now has been extended to next week.

The change comes amid allegations that the seven-member panel does not have the votes to finally restructure Prepa’s $8.9 billion debt load, as well as the utility’s operations, prompting at least one member of Congress to write to the fiscal board to urge approval of the agreement.

Moreover, once the RSA is approved by the fiscal board under Title VI of the federal Promesa law, Prepa will now have until June 28 to finalize the required documentation and begin the voting process by all creditors over the “qualifying modification,” as defined by the out-of-court restructuring process provided by Title VI. The statement did not say whether other deadlines had been changed.

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