The Commonwealth of Puerto Rico has embarked on the first phase of restructuring over $74 billion of debt. The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), enacted in 2016, governs the United States’ largest municipal restructuring.
The financially troubled Puerto Rico Electric Power Authority (PREPA) is included among PROMESA’s entities to be restructured. Prior to PROMESA’s Congressional enactment, PREPA commenced voluntary negotiations with their creditors to restructure their debt.
In this article published in Law360, Bradley Wendt provides context around the PREPA creditor negotiations and the decisive role PROMESA will play in determining the concessions borne by all Puerto Rico bondholders.