Puerto Rico Electric Power Authority

Bankruptcy judge extends plan of adjustment deadline to Dec. 21.

Puerto Rico bankruptcy Judge Laura Taylor Swain approved the Oversight Board's request for five more days.

Their support of a plan of adjustment could be key to winning approval from Bankruptcy Judge Swain.

The mediation team asked the Oversight Board to submit delayed data and analyses by end of business on Friday.

The current contract with the operator of the Puerto Rico Electric Power Authority's transmission and distribution system has been temporarily extended until a debt deal gets done.

PREPA bondholders' filing cites the Bankruoptcy Code, the PREPA Trust Agreement and other documents.

Puerto Rico Gov. Pedro Pierluisi told lawmakers he would not support a PREPA debt settlement that would cause "extraordinary increases in the cost of electricity."

Robert Mujica Jr.'s experience with New York State debt makes him a good choice, according to an observer.

The lenders say document will prevent the use of Vitol as a separate consenting impaired class.

In a fuel line lenders' motion, they requested information about the actual terms of the agreement between the board and Vitol, including the circumstances under which Vitol's commitment to vote in favor of the plan arose.

Revenues were up while economic activity slipped, with some observers suggesting Hurricane Fiona may have had a negative impact on the economy.

Fuel line attorney questions validity of the party as an impaired class.

The bondholders say they are owed $8.3 billion of principal and billions more of unpaid interest.

They say the Oversight Board's argument restricting their claims just to money in the sinking fund is wrong.

FAFAA and Gov. Pedro Pierluisi retain some influence over the direction of an adversary proceeding in the PREPA bankruptcy and on the ultimate PREPA bond deal.

Swain said the bondholders lien on revenues and the recourse nature of the bonds needs to be determined. The judge would likely order a plan confirmation hearing take place by June 2023. 

While the parties generally support the start of litigation, they are arguing about everything else.

A multi-option plan of adjustment would be filed within 60 days.

Swain postponed Wednesday's bankruptcy hearing in the case and extended the comment deadline.

Bondholders want a quick resolution and they say the Oversight Board's approach would take two years.