Market Overview

Ad Hoc Group of PREPA Bondholders Announces Term Sheet Agreement with the Oversight Board, AAFAF and PREPA


Represents first negotiated consensual restructuring agreement
between creditors, the Board and Government of Puerto Rico

Terms strongly align financial recovery for bondholders with
long-term success of PREPA

The Ad Hoc Group of Puerto Rico Electric Power Authority ("PREPA")
Bondholders today issued the following statement regarding the PREPA
debt restructuring Term Sheet Agreement it has reached with the
Financial Oversight and Management Board for Puerto Rico (the "Oversight
Board"), the Puerto Rico Fiscal Agency & Financial Advisory Authority
("AAFAF") and PREPA:

"This negotiated agreement – the first of its kind in the Commonwealth's
restructuring – is a significant positive achievement for all parties
involved. Our group has always welcomed the opportunity to reach a fair
and consensual restructuring solution for PREPA, and by working together
with the Oversight Board and the Government of Puerto Rico we have taken
an important step towards collectively achieving that goal.

"By addressing PREPA's legacy debt a pathway can be cleared to
accelerate the transformation and long-term viability of the utility.
Under the terms of the agreement, our recoveries are now tied to PREPA's
sustainable success, and we are pleased to take part in a transaction
which we are confident will ultimately further the economic revival of
not just the utility, but the Commonwealth and its people."

View Comments and Join the Discussion!