Puerto Rico Electric restructuring deadlines and hearing put on hold

By Caroline Salls

Pittsburgh, April 2 – The Puerto Rico Electric Power Authority (Prepa) and the Puerto Rico Fiscal Agency and Financial Authority’s (AAFAF) joint motion for adjournment of all deadlines included in their Prepa restructuring support agreement settlement and a related hearing was approved Thursday by the U.S. Bankruptcy Court for the District of Puerto Rico.

The order said the authorities must file a status report providing an update on Prepa’s financial condition and proposing next steps with respect to the restructuring motion by May 15.

Prepa and AAFAF said in their motion for adjournment that the spread of Covid-19 and the economic effects of the pandemic, including from the closure of all non-essential businesses on Puerto Rico, cannot be calculated at this time, “and the attention of the government of the Commonwealth of Puerto Rico is dedicated to addressing the pandemic.”

As a result, the motion said the Financial Oversight and Management Board for Puerto Rico and AAFAF “are focused on the physical and economic well-being of the people of Puerto Rico.”

Prepa and the AAFAF said Prepa’s collections have also been negatively impacted as a result of the consequences of the measures taken to address the virus.

The Commonwealth of Puerto Rico announced its Title III petition filing on May 3, 2017. The case number is 17-03283.

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