Puerto Rico power company reaches deal with fuel line lenders on $700 million in expired debt

IndustriesAssociated Press

Puerto Rico's troubled power company says it has reached a deal to restructure about $700 million in expired debt with fuel line lenders.

The Electric Energy Authority said Tuesday that lenders have two options: converting credit agreements into long-term loans or exchanging all or part of expired bonds into new bonds worth 85 percent of the existing value.

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Chief Restructuring Officer Lisa Donahue said the company is still negotiating with monoline bond insurers.

The company owes about $9 billion. It reached a deal earlier this month with some creditors to reduce principal owed in exchange for new securities worth 85 percent of the existing bonds.

Puerto Rico is struggling through nine years of economic stagnation. The governor has said the $72 billion public debt load is unpayable and needs restructuring.