SAN JUAN, Puerto Rico – A group of U.S. bondholders is offering $2 billion to help boost the finances and infrastructure of Puerto Rico's power company amid fears it will go bankrupt.
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Wednesday's announcement comes just days after Puerto Rico's government obtained a two-week extension from creditors as it once again delayed a repayment of nearly $700 million while the company prepares for a potential restructuring. The Electric Energy Authority holds nearly $9 billion in debt and owes investors some $400 million by July.
Bondholders said the $2 billion would be used for infrastructure investment so that the company can generate power at a lower rate and stabilize its finances. They stressed the money will not be used for an operational restructuring plan.
Government officials did not immediately return requests for comment.