NEW YORK, Oct 1 (Reuters) - Puerto Rico’s electric power authority, PREPA, has extended by two weeks an agreement with its bondholders and lenders that was to expire at the close of Thursday, while it is continuing to try to negotiate a deal with its bond insurers, the utility said on Thursday.
The agreement is extended until Oct. 15, PREPA said.
Reducing PREPA’s $9 billion in debt has been seen as a critical test for the U.S. territory as it tries to forge a broader restructuring of $72 billion in total debt.
PREPA in September agreed to deals with the bondholder group and its lenders for those creditors to take a 15 percent reduction on their principal. It has yet to reach a deal with the insurers.
Reporting by Megan Davies; Editing by Leslie Adler