PREPA Bondholder Group Comments on Expiration of RSA
– PREPA refused Bondholder Group’s offer of additional
liquidity –
– The Bondholders continue to believe the RSA represents the best
path to revitalizing PREPA and remain open to working with the Oversight
Board –
NEW YORK–(BUSINESS WIRE)–Today the Puerto Rico Electric Power Authority (PREPA) Bondholder Group
announced that prior to the expiration of the PREPA Restructuring
Support Agreement (RSA), PREPA refused its offer of approximately $170
million of additional liquidity. This incremental financing, along with
the $280mm that the RSA parties have already agreed to lend, would have
fully funded PREPA’s July 1st coupon payment and allowed
PREPA to honor its obligations and avoid lawsuits. In order to give
PREPA time to evaluate this proposal, the bondholders also offered to
extend the RSA to June 30th.
Following the dismissal of these offers, the Bondholder Group recognizes
that PREPA is likely to file for Title III relief. While we expect
negotiations with the Oversight Board and Puerto Rico to continue, the
Group stands ready to defend and enforce its rights as necessary.
Stephen Spencer, financial advisor to the PREPA Bondholder Group,
stated, “We are disappointed that PREPA has rejected our offer of
additional liquidity, which reflected our group’s ongoing commitment to
finding a collective solution to spur the revitalization of PREPA. We
continue to believe the RSA represents the best path forward for PREPA,
and remain open to working with PREPA and the Oversight Board to
implement our deal.”
Contacts
Media:
Sloane & Company
Dan Zacchei / Joe Germani,
212-486-9500
[email protected] / [email protected]
