Puerto Rico Electric Power Authority

Bondholders say the Puerto Rico Energy Bureau is legally required to set rates to cover all bond principal and pre- and post-petition interest due. The board disagrees.

Some observers say Jenniffer González Colón, who took office in January, may be more open to compromise with Puerto Rico Electric Power Authority bondholders.

The decision, when issued, could have implications for other Puerto Rico bond restructurings.

The court has left in place its decision affirming the bondholders lien on net revenues.

The outage began at 5:30 a.m., leaving about 1.3 million of Puerto Rico's 1.4 million customers in the dark, according to Luma Energy, the private company that operates the system. Crews have begun restoring electricity in some areas, but it may take 24 to 48 hours to fully resume service, officials said.

The continued delay in resolving the case raises constitutional concerns, a bondholder attorney said.

Calling it a "tragedy" for residents, without a negotiated setllement resolution could be years away, mediators said.

PREPA says it is short on money and Genera's parent company has said it may go out of business.

After losing its first appeal, the Puerto Rico Oversight Board initiated a second appeal with the First Circuit Court of Appeals.

The court affirmed its earlier decision, which means bondholders have a claim on the full $8.5 billion due.