PREPA deadline extended to Sept. 9

Puerto Rico Electric Power Authority mediators on Monday extended the deadline for completing their work to Sept. 9.

In late July PREPA bankruptcy Judge Laura Taylor Swain approved a request by the Puerto Rico Oversight Board to extend the deadline for mediation to 11:59 p.m., Monday, Aug. 15, with the proviso that the mediation team could extend it further to 11:59 p.m., Sept. 9 if the team gave her notice that it was appropriate.

On Monday, the mediation team reported to Swain, in their judgment "negotiations are continuing to make progress" and "it is beneficial to continue the mediation process and extend the mediation termination."

The new deadline is also the deadline for the Oversight Board to submit either a proposed plan of adjustment, a term sheet for a plan of adjustment, a litigation schedule, or "a declaration or memorandum of law showing cause as to why the court should not consider dismissal of PREPA's Title III [bankruptcy] case."

The current round of mediation sessions started in response to Gov. Pedro Pierluisi withdrawing from a PREPA debt restructuring deal in early March. At that time Swain asked the board to submit a proposed plan of adjustment by May 2. 

PREPA has about $8 billion in bond debt outstanding and about $1 billion in other debt. 

While the Oversight Board filed for bankruptcy for PREPA under the Puerto Rico Oversight, Management, and Economic Stability Act in July 2017, there have been talks among some of the involved parties about restructuring PREPA's debt since summer 2014.