Its been a long and winding road toward the resolution of the Puerto Rico Electric Power Authority bonded debt. It totals $9 billion, the largest single component of Puerto Ricos overall debt of about $70 billion.
The commonwealths top officials, the power authority and the bondholders recognize that the power authority cannot service this debt in full while modernizing its power system dealing with adverse economic conditions on the island and paying for environmental improvements required by the Environmental Protection Agency.
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In 2016, after two years of negotiations, Gov. Alejandro García Padilla signed into law a deal restructuring the power authority debt. The bondholders accepted a 15 percent haircut in the debt owed a…
Read the full article at: http://thehill.com/blogs/pundits-blog/finance/338789-another-prepa-deal-wont-help-puerto-ricos-economy