FYI: In late June, Puerto Rico’s federal overseers rejected a plan that would have let big investors recover 85 cents on the dollar from bonds backed by the island’s distressed electric company, wagering a better deal for the impoverished U.S. territory could be won in bankruptcy.
The Puerto Rico Electric Power Authority has since been devastated by Hurricane Maria, which caused billions of dollars of damage and left virtually the entire island still without power.
So on Wednesday, a group of investment funds that hold $3 billion of the utility’s bonds -- including OppenheimerFunds Inc. and Franklin Advisers Inc. -- revived the spurned deal: In return for a $1 billion loan, they said they’d be willing to accept the same terms on a third of their holdings. The price is roughly twice what some of the utility’s debt has been trading for.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-09-27/prepa-bondholders-offer-1-billion-loan-to-restore-electricity
