Puerto Rico power company obtains extension on debt payment from bondholders, lenders

Associated Press

Puerto Rico's heavily indebted power company has reached deals with a group of bondholders and lenders to extend a payment deadline, the utility said Saturday.

The Electric Power Authority, which has roughly $9 billion in debt and is facing a restructuring, said fuel line lenders have agreed to a Sept. 25 deadline and a group of bondholders to an Oct. 1 deadline.

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Officials are still negotiating with monoline bond insurers, which have not agreed to the extension deals.

"We are making progress and will continue working toward a consensual resolution that benefits (the company) and all of its stakeholders," said Lisa Donahue, the utility's chief restructuring officer.

The company reached a deal earlier this month with some of its creditors to reduce the principal owed in exchange for new securities worth 85 percent of their existing bonds.

Puerto Rico has been struggling through nine years of economic stagnation, and the governor has said the U.S. territory's $72 billion debt is unpayable and needs restructuring.