Prepa Announces Amendment to Support Agreement with Key Restructuring Creditors
SAN JUAN – The Electric Power Authority (Prepa), Puerto Rico’s publicly owned electricity provider, announced Tuesday that it has amended its previously announced restructuring support agreement (RSA) with the Ad Hoc Group of Prepa bondholders, its fuel line lenders, the monoline insurers and the Government Development Bank. The utility also amended its Bond Purchase Agreement with the Ad Hoc Group and the monoline insurers.
The amendments extend a number of deadlines, including the date for filing a petition seeking approval of the securitization transition charge and adjustment mechanism (now set for March 22, 2016), and the date for initiating a rate case in respect to Prepa’s electricity rates (now set for April 22, 2016).
“These extensions were necessitated by amendments to the PREPA Revitalization Act during the legislative process, which required additional information and documentation to be provided to the Energy Commission as part of the rate review process,” according to a utility statement.
Prepa recently reached an agreement with some of its bondholders to restructure its $9 billion debt, which will be implemented by the Revitalization Act.