Fiscal board asks for extension of lead mediator appointment in PREPA bankruptcy

By THE STAR STAFF

The Financial Oversight and Management Board asked U.S. District Judge Laura Taylor Swain on Wednesday to extend into next year the appointment of the lead mediator in talks between the Puerto Rico Electric Power Authority’s (PREPA) and its creditors.

The extension, which would run through April 1, 2026, comes as part of ongoing efforts to resolve disputes between PREPA and its creditors in settling over $9 billion in debt. The extension would mean that PREPA’s bankruptcy case will not be settled before the end of the year.

In response to the request for an extension, the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF by its initials in Spanish) raised concerns over continued monthly fees during periods of inactivity. AAFAF has requested that fees be paused until mediation resumes and a revised fee structure is implemented.

The court has directed the lead mediator to file a response, if any, to AAFAF’s position on or before noon on Friday.

The development highlights the importance of transparency and communication among stakeholders as the PREPA Title III case progresses, with the ultimate goal of ensuring a fair and sustainable solution for Puerto Rico’s power utility.