The Puerto Rico Electric Power Authority demanded Tuesday that its negotiating bondholders lend it $111 million by the end of Thursday.
The demand came after an announcement Monday evening from the bondholders that they were willing to put $66 million into an escrow account. The money would be released to PREPA when changes were made to the debt moratorium law passed in early April to except PREPA debt. The bondholders' participation in the negotiated debt exchange and bond purchase would elapse June 1.
"PREPA paid $111 million in interest to these creditors in January 2016 in reliance on the creditors' agreement to relend the same amount if two important milestones in PREPA's restructuring occurred: first, the enactment of the PREPA Revitalization Act (which occurred on February 16, 2016), and second, the filing of a petition with the Energy Commission seeking approval of the SPV Petition (which occurred on April 7, 2016), each in a form acceptable to the creditors," PREPA said in a news release. "Both milestones have been satisfied, and the bondholders are now required to fund the $111 million bond purchase on May 12, 2016."
