PROMESA

The bond parties and the Oversight Board are now arguing over the meaning of the word "account."

The judges will take written statements to decide whether to rehear the case, although petitions for rehearing are generally rejected, one observer noted.

U.S. District Judge Swain wants the parties to reach an agreement and again threatened to dismiss the case.

Some PREPA bond parties suggest the bonds should paid in full, while the board is offering around 4% to those who haven't accepted a settlement.

The board's executive director said he is unsure how much longer the PREPA bankruptcy proceedings will take.

In a separate development, the board asked an appeals court to reconsider its PREPA decision.

Puerto Rico's financial oversight board is seeking to reopen a confirmation hearing on a debt-restructuring plan for the island's power utility after an appeals court last week ruled that bondholders have a claim to the agency's future net revenue.

Observers and participants said the ruling sends a message that the municipal revenue bond pledge is strong and the Oversight Board's plan of adjustment for PREPA as it currently is proposed is unlikely to be able to stand.

Oversight Board Executive Director Robert Mujica said the only recently released fiscal 2022 ACFR showed revenues and expenditures continue to be imbalanced.

Judges say PREPA bondholders have a lien on net revenues collected post-bankruptcy.

The bond parties opposed to the plan of adjustment have already argued the Puerto Rico Oversight Board's electricity projections are too pessimistic, Judge Swain said.

Argument continues over how much PREPA will be able to pay bondholders.

Syncora and GoldenTree Asset Management want an accounting of what happened to PREPA net revenues.

The Oversight Board has given the local government until Tuesday to introduce a bill to revoke or amend a law that would reduce the Puerto Rico Electric Power Authority's revenues.

In the last few weeks projections from LUMA Energy indicate the authority can afford to pay more bond debt, opposing bond parties say.

The extension of the current solar net metering system could lower revenue for the utility.

In question is FAFAA's findings of fact and conclusions of law, which bondholders say was unauthorized.

There is no timetable for rulings in bankruptcy case or appeal of lien rulings, which could lead to months of additional work on a new payment plan.

Bond parties want several creditor classes' votes in favor of the plan of adjustment to be disqualified.

The separate settlements some bond parties have reached with the Oversight Board "dramatically violate" the trust agreement, the trustee's attorney said.