PROMESA

U.S. District Judge Laura Taylor Swain ordered the Oversight Board propose a new plan of adjustment by July 14.

Judge Laura Taylor Swain said she found the Oversight Board expert's calculations more convincing than those of the bondholders.

The board is offering $2.4 billion to all bondholders while $8.5 billion of par value is outstanding.

The plan of adjustment hearing scheduled for late July will be postponed.

Board asks judge to exclude bondholders' expert testimony and reports from plan of adjustment hearing.

There is a growing likelihood that the July 17 plan of adjustment hearing will be postponed.

The bondholders charge bad faith in negotiations and want no plan employed until all appeals are exhausted.

Assured Guaranty's attorney argued the judge's procedure to estimate the bondholders' claim should assume the Oversight Board would not exist.

Judge Laura Taylor Swain seemed sympathetic to putting a time limit on the bondholders' claim.

The electrical generator provides about 21% of the Puerto Rico Electric Power Authority's electricity and the default's impact on PREPA and PREPA's bankruptcy remain to be seen.

The judge limits legal arguments to six topics.

A consensual plan of adjustment is unlikely to be reached, according to one observer.

Puerto Rico must take additional steps to be able to regain market access, they said.

Dismissal would ease approval of a the current proposed plan of adjustment.

Included in the plan is a $545 million for a loan to the Puerto Rico Electric Power Authority and more money for the government's emergency reserve.

The U.S. Supreme Court ruled against a journalist group seeking the release of a wide range of Puerto Rico Oversight Board information, which may have had an impact on the PREPA bankruptcy proceedings.

One analyst says the final figure will be closer to the Puerto Rico Oversight Board's estimate than the bondholders'.

Without a consensual plan, the bankruptcy could be dismissed.

Judge Laura Taylor Swain is upset little mediation has occurred in recent months.

Without certification it will be harder to get the appeals court to hear any bondholders' appeal.