The Americas

Puerto Rico power company reaches new deal with creditors

Puerto Rico's power company has reached a new deal with bondholders as it seeks to restructure roughly $9 billion in debt.

The agreement calls for legislators to approve a measure by Feb. 16 needed to launch the restructuring.

A bondholders group said it and other creditors would provide $111 million through the purchase of new bonds. It said half the notes would be issued once the bill is passed and the other half once the securitization structure is submitted to an energy commission.

The power company said Thursday that the deal requires bondholders and monoline insurers to buy 50 percent of the bonds once the bill is approved.

The announcement comes just days after the original deal collapsed after legislators missed a Friday deadline to approve the bill.