SAN JUAN, Puerto Rico – Puerto Rico's power company has rejected a new proposal from a bondholders group that calls for an $8.1 billion debt exchange amid growing concerns the public agency could be the first one in the U.S. territory to go bankrupt.
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The Electric Energy Authority said Thursday that the proposal would not lead to a successful restructuring and does not share the burden of its more than $9 billion debt.
The negotiations between the power company and the bondholders group comes nearly two months after the agency submitted a long-awaited restructuring plan.
The bondholders group in its new counterproposal seeks to privatize generation to lower rates and delay debt payments for $2.5 billion in savings it said could be invested elsewhere by the power company.