The Puerto Rico Electric Power Authority said that its restructuring agreements with its creditors still are on track after the island government adopted a law allowing a debt payment moratorium.
“Our restructuring advisors have been in continuous conversations with our creditors on the implications of the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act,” said PREPA executive director Javier Quintana Méndez Wednesday night. “The Restructuring Support Agreement (RSA) with our creditors remains in place and should not be negatively affected by the new law.”
Earlier on Wednesday, Stephen Spencer, financial advisor to the Ad Hoc Group of PREPA Bondholders, had said the moratorium threatened their agreement with the authority to revamp its business and restructure its debt.
The debt payment moratorium law gives Puerto Rico Gov. Alejandro García Padilla the option to order the nonpayment of Puerto Rico’s public sector debt. It doesn’t require that he order nonpayment.
