Key facts
- A federal control board overseeing Puerto Rico's finances proposed a $3 billion settlement.
- The settlement is for restructuring the debt of Puerto Rico's power company.
- The power company holds over $10 billion in debt.
- The offer includes cash payments and new bonds.
- The proposed settlement is $1.4 billion more than previous offers.
A federal control board overseeing Puerto Rico's finances has put forth a $3 billion settlement offer to restructure the debt of the island's power company, PREPA. This proposal aims to address over $10 billion in outstanding debt held by the Puerto Rico Electric Power Authority. The settlement includes a combination of cash payments and new bonds. This offer represents a substantial increase from previous proposals, amounting to an additional $1.4 billion. The move is a significant development in the ongoing efforts to manage and restructure Puerto Rico's financial obligations, particularly concerning its critical infrastructure.