Click here to close now.




















Welcome!

News Feed Item

PREPA Reaches Agreements with Creditors

SAN JUAN, Puerto Rico, Aug. 14, 2014 /PRNewswire-USNewswire/ -- The Puerto Rico Electric Power Authority ("PREPA") today announced that discussions with its creditors have resulted in agreements that provide PREPA with a consensual path forward to improve its operations and financial situation.

Insurers and bondholders controlling more than 60 percent of PREPA's outstanding bonds have entered into contractual arrangements and agreed to amend the existing bond documents to provide PREPA with liquidity and time to work with its creditors to develop a plan to achieve a restructuring of its business.

The insurers and bondholders who signed the agreements, including those that have commenced litigation against the Debt Enforcement and Recovery Act, have agreed that they will not exercise remedies against PREPA during the term of these agreements.  During this period, PREPA will continue to make required debt service payments in full.

The banks that provide revolving lines of credit used to pay for purchased power, fuel and other expenses have agreed to extend until March 31, 2015 their previously announced agreements to not exercise remedies as a result of certain credit downgrades and other events. These agreements allow PREPA to continue to delay certain payments that were due to these lenders in July and August, respectively, until March 31, 2015. During this period, the banks will receive interest payments on these amounts.

The contractual agreements with PREPA's insurers, bondholders and banks will go into effect immediately and an amendment to the existing bond documents, which will provide PREPA the ability to use approximately $280 million held in its construction fund for payment of current expenses and capital improvements, will become effective later this month. The additional liquidity will assist PREPA in its ongoing operations, while also keeping funds available for capital improvements that will help to facilitate cleaner and more efficient fuel delivery, enabling Puerto Rico to achieve the targets established in the Energy Reform Act.

As part of the new agreements, GDB has agreed that it will not exercise set off rights with respect to PREPA deposits and will not require PREPA to make principal or interest payments due under GDB loans.

"Today's announcement is an important milestone in the transformation of PREPA and gives us a clear line of sight to the future," said Harry Rodriguez, President of PREPA's Board of Directors. "PREPA is working hard to deliver with infrastructure improvements, better cost controls and improved service.  Today's agreements give us additional tools toward the creation of a more modern and self-sustaining PREPA for the future."

Juan F. Alicea Flores, executive director for PREPA, stated, "Today's agreements give PREPA the additional time and financial resources we need to reach a comprehensive solution that ensures our ability to provide a safe, reliable and efficient power supply to all Puerto Ricans for many years to come. It is the result of a lot of hard work by many people, and I want to thank all of our stakeholders for their contributions to this very positive outcome."

David H. Chafey, president of the Board of Directors of GDB, commented, "The Government Development Bank of Puerto Rico is pleased with  PREPA's ongoing efforts to become a self-sustaining business. The agreements announced today are important steps in the process of creating a stronger PREPA for the people of Puerto Rico."

As part of its agreements with the creditors group, PREPA has committed to complete a five-year business plan by December 15, 2014 and to appoint a chief restructuring officer (CRO) by September 8, 2014.  The CRO will work closely with Mr. Alicea and the rest of PREPA's Board and management team to accelerate PREPA's transformation, ensuring the utility is able to efficiently implement the changes necessary to achieve its financial and operating targets. Initial areas of focus are expected to include optimizing the generation, transmission and distribution of the Island's power supply, refining collection and expense management processes, and enhancing the overall quality of data collection and reporting.  Under the terms of the agreements announced today, PREPA must deliver a full debt restructuring plan by March 2, 2015.

"The additional insights and experiences the CRO will bring to PREPA will be important assets as we work to build a stronger utility for the future," Mr. Alicea added.

PREPA will file a notice on the Electronic Municipal Market Access (EMMA) system outlining the key terms of its agreements with the creditor groups. PREPA agreed to make these disclosures under confidentiality agreements it signed with certain of its creditors in conjunction with the ongoing discussions. The notice will be filed today and includes additional information about the agreements and PREPA.

SOURCE Puerto Rico Electric Power Authority

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...