SAN JUAN, Puerto Rico – Puerto Rico's financially struggling power company has won a big reprieve, announcing that creditors have allowed it to postpone payment of $671 million worth of loans until next year.
The state-owned Electric Power Authority said Thursday that creditors agreed to extend the payment until March 31. The power company owes Scotiabank $525 million and Citigroup $146 million.
The announcement comes amid growing speculation that the power company might default on its $9.3 billion debt.
Many analysts believe the Electric Power Authority will be the first state business to embrace a new law that allows some of Puerto Rico's public corporations to restructure their debt.
Puerto Rico is trying to emerge from a nearly decade-long economic slump as it struggles with $73 billion public debt.