Prepa still doesn’t know whether to keep AlixPartners
SAN JUAN – The Puerto Rico Electric Power Authority (Prepa) still does not know whether to extend its contract with AlixPartners, which expires Feb. 15.
A review by Caribbean Business, however, corroborated that there are more than $20 million in the public utility’s budget reserved for restructuring expenses.
Prepa Executive Director Javier Quintana said at a public hearing that since 2014, a total of $45 million have been paid in eight extensions to AlixPartners. These are broken down into $12.5 million in fiscal year 2015, $23.7 million in fiscal 2016 and $8.6 million in the current year.
Quintana said that a new extension has not been ruled out since the Fiscal Agency and Financial Advisory Authority of Puerto Rico (FAFAA) and Prepa are in transition in which information is exchanged so the former assumes some of the functions AlixPartners has carried out so far regarding debt restructuring negotiations.
FAFAA, however, has said it would take control of negotiations with its adviser, Rothschild.
“We are in the process of understanding the role that FAFAA consultants will have in terms of all the tasks that have to be carried out within Prepa to see what tasks will be covered, which will remain pending and to see, then, who will assume the role of those pending tasks. Once we complete that process, we would be in a position to determine the role of AlixPartners,” Quintana said.
AlixPartners has a range of duties at Prepa that include working with operations and debt restructuring. Prepa’s director also pointed out that he is waiting to know if the firm intends to request an extension to its contract, which is something that “is being considered at the moment.”