PREPA Confirms Ongoing Discussions Concerning Potential Financial Agreements With Bondholders and Bond Insurers

SAN JUAN, Puerto Rico, July 31, 2014 /PRNewswire-USNewswire/ -- The Puerto Rico Electric Power Authority ("PREPA") today confirmed that it is having productive discussions with parties owning or insuring more than 60 percent of its outstanding bonds and lenders who provide revolving lines of credit used to pay for purchased power, fuel and other expenses, with the goal of reaching agreement to obtain incremental liquidity in the near term. 

In light of these discussions, the lenders who provide revolving lines of credit used to pay for purchased power, fuel and other expenses have agreed to extend until August 14, 2014 their previously announced agreements to not exercise remedies as a result of certain credit downgrades and other events. PREPA will continue working cooperatively with its stakeholders in the coming weeks to evaluate various strategies to achieve its near- and longer-term financial and operational objectives. 

Under the agreements, PREPA may continue to delay certain payments that were due in July until August 14, 2014. Payments due to employees and suppliers will continue to be paid in the normal course.     

"This latest show of support from our bondholders, bond insurers and lenders  provides us with additional time to evaluate all available options to ensure we are reaching the best possible outcome for our employees, customers, creditors and suppliers," said Juan F. Alicea Flores, Executive Director for PREPA. "We want the people to know that we continue working hard to ensure we are able to provide a safe, reliable and efficient power supply to all Puerto Ricans for many years to come and thank all of our stakeholders for their ongoing support during this process."

SOURCE Puerto Rico Electric Power Authority