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NEW YORK, Oct 1 (Reuters) - Puerto Rico's electric power authority PREPA is expected to extend a creditor agreement expiring at the end of day Thursday with a bondholder group, to allow debt restructuring negotiations with bond insurers to continue, a source familiar with the bondholders said on Thursday.
PREPA in September agreed to deals with the bondholder group and its lenders to reduce its $9 billion debt. It has not yet reached a deal with the insurers of those bonds.
It also agreed in September to an extension of a forbearance agreement - which bars creditors from calling defaults and filing lawsuits - with the bondholders and lenders to Oct. 1. That deadline is expected to be extended to Oct. 15, the source said, although it was not certain the extension would go through. (Reporting by Megan Davies)