SAN JUAN, Puerto Rico, Nov. 16, 2015 /PRNewswire/ -- The Puerto Rico Electric Power Authority (PREPA) today announced that it has extended its contract with AlixPartners through March 15, 2016, as the utility continues negotiation discussions with creditors and focuses on implementing PREPA's comprehensive transformation.
As part of the contract extension agreement, Lisa Donahue and her team will continue to assist PREPA in its transformation and Ms. Donahue will remain in her role as PREPA's Chief Restructuring Officer. The extension agreement includes $7,284,000 in fees which will enable AlixPartners to provide specialized guidance for upcoming initiatives contemplated as part of PREPA's transformation.
AlixPartners will also continue to assist PREPA in achieving and executing upon the Restructuring Support Agreement reached with the Ad Hoc Bondholder Group, Fuel Line Lenders and Government Development Bank and in negotiating with monoline bond insurers. This extension enables PREPA to continue implementing critical initiatives uninterruptedly. PREPA will continue working to modernize power plants, increase its service offering, provide employees with a job environment where they can work safely and effectively, and offer customers stable rates, all in compliance with the applicable environmental regulations.
"PREPA's transformation has been an immense undertaking and AlixPartners has been a key advisor for us," said Harry Rodriguez, Chairman of PREPA's Governing Board. "To date, we have identified and implemented millions of dollars in cost savings and found new ways to enhance efficiency, improve operations, and facilitate future investments in our infrastructure. The work of Lisa Donahue, her team and our employees is helping to transform PREPA, so that consumers can have stable and reliable energy for generations to come."
This is the third extension of the AlixPartners contract and will increase the value of the contract to $27,759,000. The extension agreement will enable AlixPartners to provide specialized guidance and expertise in areas such as information systems, transmission and distribution, human resources, finance and operations.
SOURCE Puerto Rico Electric Power Authority