Puerto Rico's power company says it has reached a deal with a group of bondholders to restructure an agency that holds more than $9 billion in debt.
The Electric Power Authority said Wednesday the group will receive new securitization notes in exchange for their current bonds, among other things.
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Chief restructuring officer Lisa Donahue said the deal is expected to reduce the power company's debt by about $670 million if 75 percent of bondholders outside the group participate.
The company also obtained an extension on its debt payment until Sept. 18, with all creditors in agreement except the National Public Finance Guarantee Corporation.
The power company noted that negotiations with other bond insurers and lenders are ongoing.