PREPA Bondholder Group Issues Statement Regarding RSA Extension

NEW YORK--()--The Puerto Rico Electric Power Authority (PREPA) Bondholder Group today issued the following statement regarding the extension of the PREPA Restructuring Support Agreement (RSA) until January 31, 2017:

“Unfortunately, the delays in consummating the PREPA deal (including the non-consolidation of validation proceedings for the new bonds) have led to significant additional expense and risk for PREPA ratepayers and creditors alike. This risk is furthered by the rising interest rate environment announced yesterday by the Federal Reserve Bank.”

“The PREPA bondholders believe that the extension of the RSA is a positive step, and believe that it will ultimately lead to the implementation of the PREPA deal by mid-2017. To date, PREPA’s creditors have supported PREPA with more than a billion dollars of incremental financial support – at a time when PREPA has no access to financial markets – and allowed PREPA to pass along nearly $2 billion of fuel cost savings to customers. Furthermore, in this RSA extension creditors have agreed to forgo reimbursement of substantial deal-related expenses pending an agreement on or before January 31 that will set forth the path to near-term execution of the PREPA deal.

“Unfortunately, the delays in consummating the PREPA deal (including the non-consolidation of validation proceedings for the new bonds) have led to significant additional expense and risk for PREPA ratepayers and creditors alike. This risk is furthered by the rising interest rate environment announced yesterday by the Federal Reserve Bank.

“In spite of these challenges, we remain committed to the completion of this deal, which is still the sole consensual agreement reached between the Commonwealth and a significant creditor group. We are confident that the execution of the RSA, which would represent the culmination of over two years of work by both sides, continues to represent the best path forward for the people of Puerto Rico, PREPA and its creditors.”

Contacts

Sloane & Company
Dan Zacchei, 212-486-9500
dzacchei@sloanepr.com
or
Joe Germani, 212-486-9500
jgermani@sloanepr.com

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