The Puerto Rico Electric Power Authority Bondholder Group offered to put money into escrow to keep its debt arrangements with the utility on track as the legislature works out the details of a debt payment moratorium law.
On Monday the group announced it was willing to "pre-fund" the purchase of $61 million of bonds until the legislature passes an amendment excluding PREPA debt from a previously passed debt moratorium bill, or May 31, whichever is earlier.
"We continue to be supportive of PREPA and the Puerto Rico legislative process," said the group's financial advisor Stephen Spencer in a press statement.
The bondholders are seeking an amendment to the Moratorium Act passed in early April that authorizes the government to stop making payments on any Puerto Rico public sector debt. The Puerto Rico House of Representatives passed amendments on April 18. A source in the Puerto Rico Senate said that the Senate may approve a different version of the amendments on Thursday.
If different versions are passed the legislature would have to create a conference committee to create a consensus bill. Upon passage, the bill would have to be sent to Puerto Rico Gov. Alejandro García Padilla. He has said that he will veto the amended versions as not allowing enough flexibility about government payment. The House and Senate may have enough votes to override the veto.
