The Puerto Rican electricity utility Puerto Rico Electric
Power Authority (PREPA) announced details of a $3 billion
restructuring deal to exchange existing bonds for new debt for
existing debtors this month, marking a big stride in the
company’s attempts to recover from significant
indebtedness of more than $9 billion.
While the move has been welcomed as a step in the right
direction, certain aspects have been brought into question
including caveats that link the bonds to the
island’s overall recovery and the quasi-private
nature of the utility itself.
"This is what many believe to be the most favourable outcome
that could have come from this situation, it is a significant
Jaime Senior Fernández, partner at Headrick Rizik
Alvarez & Fernández.
Puerto Rico is still struggling to recover from the
devastation of 2017's hurricanes"Even if you value those bonds
at less than face value, it still...