Team negotiating the debt adjustment plan for the bankrupt of PREPA requested another extension

By The Star Staff

The mediation team negotiating a debt adjustment plan for the bankrupt Puerto Rico Electric Power Authority (PREPA) on Thursday requested another extension, the fourth one, to complete negotiations.

Current negotiations are slated to end September 9.

“The mediation team believes that further material progress can be made, and, to further this goal, the mediation team has scheduled an in-person mediation session with certain of the mediation parties to occur on September 13, 2022, in New York City,” the team said.

Therefore, the mediation team asked the Title III Bankruptcy Court to approve a fourth extension of the termination date to September 16, 2022 at 11:59 p.m. They also asked the court to grant the mediation team discretion, based on its assessment of the material progress of the mediation, to further extend the termination date through and including September 30, 2022 at 11:59 p.m. without further Court approval by filing a notice of such extension with the Court. They also asked the court to grant the mediation team discretion to extend the termination date for purposes of its involvement in any secondary or drafting terms.

PREPA has been in bankruptcy since 2017 to restructure $9 billion in debt.

A previous debt adjustment plan that had been negotiated in 2019 was canceled forcing parties to go back to the negotiating table.