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PuertoRico $72 Billion Bad Debt Is A Reality; Power Utility Bond Debt Deal Collapses. Is ‘Everything Awesome’?
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
investmentwatchblog.com / Submitted by IWB, on January 25th, 2016
Bondholders signal willingness to extend legislative deadline as Electric Power Authority grapples with $8.2bn bond debt, which could lead to power cuts
A deal to restructure Puerto Rico’s troubled power utility’s $8.2bn bond debt fell apart early Saturday, after lawmakers missed a Friday midnight deadline to approve key conditions for the proposed bond swap, including putting a debt payment charge directly on customers’ bills.
The agreement reached with 70% of the Puerto Rico Electric Power Authority’s bondholders would have cut its debt by $600m and relaxed terms on more than $700m in debt payments in return for the more secure new bonds. Officials warn the utility will run out of cash by summer without debt restructuring, possibly prompting power cuts.
Bondholders offered to extend the legislative deadline but wanted to change terms of a $115m loan that would have provided liquidity to PREPA, but the authority found the new conditions unacceptable.
The post PuertoRico $72 Billion Bad Debt Is A Reality; Power Utility Bond Debt Deal Collapses. Is ‘Everything Awesome’? appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/01/25/puertorico-72-billion-bad-debt-is-a-reality-power-utility-bond-debt-deal-collapses-is-everything-awesome/
