The Puerto Rico Electric Power Authority announced Tuesday it has executed an amendment to its previously announced restructuring support agreement (“RSA”) with the Ad Hoc Group of PREPA bondholders through Dec. 17, 2015.
The amendment extends a number of the automatic termination events set forth in the RSA, including the date for reaching an agreement with the monoline bond insurers and the date for enactment of the PREPA Revitalization Act. PREPA’s creditors comprise traditional municipal bond investors and hedge funds, its fuel line lenders and the Government Development Bank for Puerto Rico.
PREPA and the supporting creditors have not reached an agreement with the monoline bond insurers, and the failure to reach such an agreement could jeopardize PREPA’s ability to proceed with the proposed restructuring transactions, the publicly owned utility said.
PREPA will use the extension to continue discussions with the monoline bond insurers and supporting creditors, while the legislative process to approve the PREPA Revitalization Act continues.
On Tuesday, Gov. Alejandro García-Padilla said the door remains open to calling a special legislative session to vote on the bill. Local media outlets reported Tuesday the session could be called for Dec. 12-13.