​Puerto Rico power company makes debt deal – CBS News

SAN JUAN, Puerto Rico – The troubled state-owned Puerto Rico power company announced a restructuring plan Wednesday with some of its creditors that would provide breathing room for an island staggering under the weight of its public debt.

A group of bondholders holding about a third of the power company’s $9 billion debt, agreed to reduce the principal owed by the Puerto Rico Electric Power Authority in exchange for new securities worth 85 percent of their existing bonds, the utility said in a statement.

The deal, if approved by bondholders outside the group, would reduce the principal by $670 million and would save $700 million in interest payments and principal over the next five years. It is part of a broader plan to restructure debt and overhaul operations at the utility known as PREPA.

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