GLOBAL ECONOMY

Puerto Rico's heavily indebted power company reaches deal to extend payment deadline

A man plays his guitar while he begs for money in front of a closed down business in Old San Juan, Puerto Rico, Monday, June 29, 2015. International economists released a critical report on Puerto Rico's economy Monday on the heels of the governor's warning that the island can't pay its $72 billion public debt. (AP Photo/Ricardo Arduengo)

A man plays his guitar while he begs for money in front of a closed down business in Old San Juan, Puerto Rico, Monday, June 29, 2015. International economists released a critical report on Puerto Rico's economy Monday on the heels of the governor's warning that the island can't pay its $72 billion public debt. (AP Photo/Ricardo Arduengo)

Puerto Rico's heavily indebted power company has reached deals with a group of bondholders and lenders to extend a payment deadline, the utility said Saturday.

The Electric Power Authority, which has roughly $9 billion in debt and is facing a restructuring, said fuel line lenders have agreed to a Sept. 25 deadline and a group of bondholders to an Oct. 1 deadline.

Officials are still negotiating with monoline bond insurers, which have not agreed to the extension deals.

"We are making progress and will continue working toward a consensual resolution that benefits (the company) and all of its stakeholders," said Lisa Donahue, the utility's chief restructuring officer.

The company reached a deal earlier this month with some of its creditors to reduce the principal owed in exchange for new securities worth 85 percent of their existing bonds.

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Puerto Rico has been struggling through nine years of economic stagnation, and the governor has said the U.S. territory's $72 billion debt is unpayable and needs restructuring.

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