July 1 (Reuters) - Puerto Rico’s distressed power authority, PREPA, avoided default by making a $415 million bond payment due on Wednesday, with some financing for liquidity provided by bond insurers that backed the payments, PREPA announced in a statement.
“We are pleased we were able to reach an agreement that allowed us to make the payment to our bondholders today and avoid a default,” said Lisa Donahue, PREPA’s Chief Restructuring Officer.
PREPA is attempting to restructure some $9 billion in debt, but faces resistance from creditors reluctant to take reduced payouts. Both sides agreed to extend a creditor forbearance agreement, which protects PREPA from litigation until Sept. 15, from June 30. (Reporting by Megan Davies in New York; Editing by Jeffrey Benkoe)