NEW YORK/SAN JUAN, Puerto Rico Dec 15 (Reuters) – Puerto
Rico’s electric power authority, PREPA, is expected to ask
bondholders to extend a forbearance agreement to give it more
time to turn around its struggling operations, according to two
people familiar with negotiations.
PREPA met with bondholders in New York on Monday but did not
deliver a comprehensive 5-year business plan as expected.
Instead it outlined the current challenges facing the utility,
the sources said. PREPA was required to present the plan as part
of the forbearance agreement it signed earlier this year.
NEW YORK/SAN JUAN, Puerto Rico (Reuters) – Restructuring experts will present different scenarios to overhaul Puerto Rico’s troubled electric power authority (PREPA) to creditors on Monday, but will stop short of recommending job cuts, the president of PREPA’s board said in a statement.
The proposals, which will not be made public, were prepared by Chief Restructuring Officer Lisa Donahue of Alix Partners as part of an agreement with creditors.
By Edward Krudy
(Reuters) – Puerto Rico’s public transit system will shut down on Monday if lawmakers do not increase a tax on oil, the U.S. commonwealth’s Government Development Bank said, accusing politicians of taking an “irresponsible” gamble on the island’s economy.
The possible shutdown of Puerto Rico’s buses and commuter train services, affecting 75,000 commuters, would be a major escalation of the island’s debt crisis and would threaten its fragile economy.
NEW YORK/SAN JUAN, Puerto Rico, Nov 25 (Reuters) – The U.S.
Federal Bureau of Investigation launched a surprise raid at
Puerto Rico’s Aqueduct and Sewer Authority (PRASA) on Tuesday in
a probe the head of the commonwealth agency said was focused on
a single case and not the entire agency.
“They came for some very specific information that we openly
provided regarding one case,” Executive President Alberto Lazaro
said in a telephone interview.
NEW YORK, Oct 20 (Reuters) – Puerto Rico’s Government
Development Bank (GDB), the financing arm of the troubled U.S.
commonwealth, will require around $1.3 billion in market
financing by the end of December to meet its liquidity
forecasts, according to a recent update from the GDB.
The financing, aimed at shoring up the GDB’s liquidity
position, would include $1 billion of a loan made to the Puerto
Rico Highway and Transportation Authority (PRHTA) by the GDB
and the remaining balance of $292 million of $400 million in
PRHTA’s short-term bond anticipation notes.
Oct 15 (Reuters) – Puerto Rico’s governor nominated Treasury
Secretary Melba Acosta Febo as president of the Government
Development Bank (GDB) on Wednesday in a move that places more
emphasis on the financing needs of the troubled U.S.
The move, part of a broader shake-up of the government’s
economic team, will be of interest to investors in the island’s
more than $70 billion in debt. It comes at a time when the
government is trying to make good on its promises to balance the
budget, kick-start the economy and manage liquidity.
NEW YORK (Reuters) – Puerto Rico paid a steep price to complete a $1.2 bln short-term financing deal on Friday as bonds of the indebted commonwealth slipped to a three-month low and recent data showed the economy and tax revenues remain weak.
Puerto Rico paid an interest rate of nearly 8 percent to borrow from a syndicate of banks until next June, the commonwealth’s Government Development Bank (GDB) said on Friday, a hefty premium compared with top-rated municipal borrowers, who pay about 0.13 percent to borrow for a year.
NEW YORK, Oct 9 (Reuters) – Puerto Rico’s tax revenues
unexpectedly fell in September as nearly every tax category
missed the government’s forecast, casting doubt on the ability
of the heavily indebted U.S. commonwealth to balance its budget.
September revenues fell to $709 million, a drop of 3 percent
compared to the same period last year, and $46 million shy of
the governments forecast, Puerto Rico’s Treasury Department said
in a statement on Thursday.
NEW YORK, Oct 9 (Reuters) – Moody’s “manipulated” public
pension data in a way that has presented an excessively bleak
picture of the $3.7 trillion sector, an advocacy group for state
pension funds said in a hard-hitting open letter to the ratings
The letter, dated Oct. 8, follows the publication of a
report by Moody’s last month that claimed public pension
liabilities had tripled to $2 trillion from 2004 to 2012 and
that public pension funds had been taking on greater risk to
make up the shortfall.
NEW YORK, Oct 7 (Reuters) – Bond insurer MBIA was
told two weeks ago about a server breach that compromised the
data of thousands of local U.S. government entities, but it did
not address the problem until earlier this week, according to
the cyber security expert who discovered the intrusion.
MBIA said on Tuesday it had been notified that some client
information at its Cutwater Asset Management unit may have been