SAN JUAN, Puerto Rico – A deal to restructure $8.2 billion in debt of the Puerto Rico Electric Power Authority has fallen apart.
The U.S. territory's lawmakers missed a Friday midnight deadline to approve key conditions for the bond swap. Those include putting a debt payment charge directly on customers' bills.
Bondholders offered to extend the deadline, but the authority says they want unacceptable new conditions.
The agreement reached with 70 percent of the authority's bondholders would have cut its debt by $600 million and relaxed terms on more than $700 million in debt payments in return for the more secure new bonds.
Officials and a group of bondholders say they remain willing to continue negotiations.
Officials warn the utility will run out of cash by summer without debt restructuring, possibly prompting power cuts.