Puerto Rico Electric Power Authority

A new preliminary restructuring deal between the Puerto Rico Electric Power Authority and its creditors is a positive step for bondholders in a post Hurricane Maria world, according to analysts.

Puerto Rico issues rallied after reports the island’s electric company struck a debt restructuring agreement with its bondholders.

The U.S. Territorial Relief Act of 2018 would give territories the option to terminate their debt obligations while authorizing $7.5 billion in federal funds to compensate mainland creditors who are individual investors, trade unions, pension plans, and open-end mutual funds.

June's unemployment rate was the lowest monthly rate since at least 1975.

The previous named director and four board members resigned last week.

Members of Congress and market observers were divided over the ramifications of Friday's court opinion that the U.S. is liable for debt cuts mandated by the Oversight Board.

U.S. Court of Federal Claims Chief Judge Susan Braden carved a legal path for holding the federal government liable for cuts to Puerto Rico bonds.

The judge dismissed Aurelius' argument that the U.S. Constitution had prohibited the means used to appoint the oversight board members.

Governor is setting up the appointment of a new executive director at a salary lower than one announced Wednesday.

The action follows a resignation by the PREPA executive director and pressure from the governor.