SAN JUAN, Puerto Rico – 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.