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Lawmakers, FOMB clash with holdout creditors over PREPA deal; board proposes $2.6 billion settlement
Summary
The subcommittee heard that a group of nonconsenting PREPA bondholders led by GoldenTree is seeking recovery levels the Financial Oversight and Management Board says would be unaffordable for Puerto Rico ratepayers and threaten grid reliability.
Lawmakers, the Financial Oversight and Management Board (FOMB), federal analysts and Puerto Rico officials debated how to resolve the Puerto Rico Electric Power Authority’s (PREPA) remaining debt and who should cover the cost of repairs and modernization to the island’s failing grid.
Robert Mujica, executive director of the FOMB, said the board has reached agreements with creditors representing 44% of PREPA’s debt but that a group of nonconsenting bondholders — led by GoldenTree Asset Management — is demanding full recovery claims totaling about $12 billion, including pre‑ and post‑petition interest. “We will identify $2,600,000,000 for the creditors. That’s how much we think is…
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