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  • Writer's pictureThe San Juan Daily Star

PREPA bondholders demand documents showing utility’s true net revenues




By The Star Staff


Puerto Rico Electric Power Authority (PREPA) bondholders GoldenTree Asset Management and Syncora Guarantee want the Financial Oversight and Management Board to turn over documents for an investigation into whether PREPA generated net revenues that could have gone toward paying bonds.


The request from the bondholders is part of litigation seeking relief from the automatic stay to allow bondholders to obtain appointment of a receiver for PREPA to protect their undisputed property rights.


The bondholders said monthly reports indicated that PREPA generated $3.5 billion in net revenues between fiscal year (FY) 2016 and FY 2020, which ended June 30, 2020, and diverted over $3.3 billion from the sinking fund. The oversight board said those reports were inconsistent with the audited statements, which showed that PREPA did not generate net revenues.


“The Oversight Board denies that it diverted any Net Revenues from the Sinking Fund and disavows PREPA’s Monthly Reports, claiming they are inconsistent with PREPA audited financial statements,” the board said.


GoldenTree said it should be allowed to investigate the oversight board’s claim.


“[Movants] are entitled to test the factual assertions made by the oversight board in its opposition to the renewed motion or have them disregarded,” the bondholders’ motion said.


U.S. District Judge Laura Taylor Swain is slated to deal with the situation at the next omnibus hearing in PREPA’s Title III bankruptcy proceeding, which is scheduled for May 22.

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