U.S. bondholders offer $2B boost for Puerto Rico power company

A group of U.S. bondholders is offering $2 billion to help boost the finances and infrastructure of Puerto Rico's power company amid fears it will go bankrupt.

Wednesday's announcement comes just days after Puerto Rico's government obtained a two-week extension from creditors as it once again delayed a repayment of nearly $700 million while the company prepares for a potential restructuring. The Electric Energy Authority holds nearly $9 billion in debt and owes investors some $400 million by July.

Bondholders said the $2 billion would be used for infrastructure investment so that the company can generate power at a lower rate and stabilize its finances. They stressed the money will not be used for an operational restructuring plan.

Government officials did not immediately return requests for comment.

Like us on Facebook
Follow us on Twitter & Instagram

More On This...