Creditors Urge Haste in Implementing Prepa RSA
Bond Insurer Stresses Savings in Deal
Time is of the essence in getting the proposed two-year-old Puerto Rico Electric Power Authority (Prepa) restructuring support agreement (RSA) over the finish line, according to holders of the public utility’s $9 billion debt who have filed motions in bankruptcy court seeking a mediation process that could expedite its implementation by going around the required approval of the island’s legislature.
National Public Finance Guarantee Corp., which insures $1.8 billion in Prepa bonds, joined the Ad Hoc Group of Prepa bondholders in an urgent motion before U.S. District Judge Laura Taylor Swain requesting that the court appoint a mediator and impose deadlines, stressing that the Puerto Rico Financial Oversight and Management Board’s (FOMB) own deadline to file the RSA by the end of the month is approaching and action has not been taken yet to finalize a deal covering what is considered the crown jewel in Puerto Rico’s debt game.
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