Puerto Rico water utility does not need restructuring now - Gov's aide
Aug 24 (Reuters) - The chief of staff for Puerto Rico's governor on Monday said the administration does not believe the island's water and sewer utility will require a debt restructuring.
Víctor Suárez Meléndez, the top aide to Governor Alejandro García Padilla, said in a statement that the fact that the water authority, known as PRASA, is seeking to sell around $750 million in bonds at the same time that Puerto Rico is appealing a court ruling that struck down a local restructuring law does not mean that PRASA will seek to restructure its debt if the U.S. territory succeeds in the appeal.
"Assuming PRASA's financial projections are met and the utility is able to access the market on reasonable terms and for sufficient amounts to cover its capital needs, we currently do not contemplate PRASA necessitating a restructuring of its debt or seeking protection under the Recovery Act or any similar law," Melendez said.
(Reporting By Dan Burns)
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