UPDATE 2-Puerto Rico's PREPA, creditors to meet Thursday -sources
(Adds details about PREPA feedback, plan proposed, meeting)
By Nick Brown and Megan Davies
NEW YORK, June 23 (Reuters) - Puerto Rico's distressed power authority, PREPA, will meet in New York on Thursday with its creditors, which have offered a new debt restructuring plan in response to a PREPA proposal earlier this month, three people familiar with the talks told Reuters.
The creditors' plan is based on the same capital expenditure and other financial assumptions that are in PREPA's plan, but it would give the debt more favorable treatment, said the people, who declined to be named because talks are private. The new proposal offers more relief to PREPA than the original plan, said one source.
PREPA was receptive to the proposal and has given constructive initial feedback, that source said. More detailed feedback is expected from PREPA on Thursday.
The talks are seen as a forerunner to whether the U.S. territory can fix other broken public entities as it tries to climb out of a $73 billion debt hole.
PREPA is trying to restructure some $9 billion in debt but faces push-back from creditors loath to take reduced payouts. Restructuring talks are in crunch time, with PREPA facing a July 1 interest payment it has said it cannot afford.
The utility also announced on Tuesday that its chief executive Juan Alicea-Flores had resigned.
Sides will meet at 9 a.m. at the Manhattan offices of PREPA's lawyers, Cleary Gottlieb Steen & Hamilton, said the people. The meeting is expected to last a couple of hours, one of the sources said. Continuación...