World

Puerto Rico power company forced to sell bonds to obtain capital amid financial crisis

Puerto Rico's troubled power company has been forced to sell bonds once again to obtain capital and avoid defaulting on a $415 million debt payment with a worsening economic crisis in the U.S. territory.

The Electric Power Authority said Wednesday it paid $153 million in cash and the rest from its debt service reserve accounts. Creditors agreed to buy $128 million worth of bonds to provide liquidity. The bonds have to be paid in full by December.

Creditors also agreed to extend a debt payment deadline to Sept. 15.

A bondholders' group said that agreement will automatically end if a restructuring support deal is not reached by Sept. 1. The group said it would take legal action if negotiations derail or if bondholders are treated unfairly.