U.S. bondholders offer $2B boost for Puerto Rico power company
{{#rendered}} {{/rendered}}SAN JUAN, PUERTO RICO - NOVEMBER 14: A worker sweeps up litter on November 14, 2013 in San Juan, Puerto Rico. The Government remains the largest employer in Puerto Rico and can only service about 11 percent of the pension costs out of it's budget. The island-territory of the United States is on the brink of a debt crisis as lending has skyrocketed in the last decade with the government issuing municipal bonds mostly to finance pensions. Market analysts have rated those bonds as junk and suspect it's 70 billion dollar debt might be unserviceable in the near future. (Photo by Christopher Gregory/Getty Images) (2013 Getty Images)
A group of U.S. bondholders is offering $2 billion to help boost the finances and infrastructure of Puerto Rico's power company amid fears it will go bankrupt.
Wednesday's announcement comes just days after Puerto Rico's government obtained a two-week extension from creditors as it once again delayed a repayment of nearly $700 million while the company prepares for a potential restructuring. The Electric Energy Authority holds nearly $9 billion in debt and owes investors some $400 million by July.
Bondholders said the $2 billion would be used for infrastructure investment so that the company can generate power at a lower rate and stabilize its finances. They stressed the money will not be used for an operational restructuring plan.
{{#rendered}} {{/rendered}}Government officials did not immediately return requests for comment.
Like us on Facebook
Follow us on Twitter & Instagram