The Puerto Rico Electric Power Authority (“PREPA”) Bondholder Group today issued the following update on its Restructuring Support Agreement (“RSA”) with PREPA, which under the previous terms of the agreement was conditioned to expire on January 22nd if the PREPA Revitalization Act was not passed by the Puerto Rican legislature:

“Today the PREPA Bondholder Group put forward an offer to extend the RSA until February 12th in order to give the Puerto Rican legislature more time to pass the PREPA Revitalization Act. Based on our direct and positive conversations with Puerto Rican lawmakers, we are optimistic that the bill will be passed and it was our desire to be as supportive of the legislative process as possible. In addition, we also offered to extend our Bond Purchase Agreement (“BPA”) with PREPA, under which RSA creditors would provide $115 million in additional financing once the energy commission approves the securitization charge, with a deadline of May 23rd. This amendment to the BPA reflects a milestone that was previously agreed upon, and was included in order to help ensure the deal would get done – as the energy commission approval is a vital element of the agreement.

"Unfortunately, PREPA is choosing not to extend the RSA. Over the approximately 18 months that we have been negotiating this plan it has consistently been our desire to reach a fair, collaborative agreement that would benefit all stakeholders, including the people of Puerto Rico. The plan has been described as fair to all parties and beneficial to Puerto Rico – not only by key legislative leaders but by other decision-makers in the Commonwealth. This is why we were willing to offer these further concessions, recognizing the complexities of the legislative process. While it is extremely disappointing and perplexing that PREPA has chosen to take this stance, we continue to remain open to reaching a deal with PREPA and it is our sincere hope that they reconsider their position and assume postures beneficial to the people of Puerto Rico.”