Wednesday, January 27, 2016

PuertoRico $72 Billion Bad Debt Is A Reality; Power Utility Bond Debt Deal Collapses. Is ‘Everything Awesome’?

Bondholders signal willingness to extend legislative deadline as Electric Power Authority grapples with $8.2bn bond debt, which could lead to power cuts
A deal to restructure Puerto Rico’s troubled power utility’s $8.2bn bond debt fell apart early Saturday, after lawmakers missed a Friday midnight deadline to approve key conditions for the proposed bond swap, including putting a debt payment charge directly on customers’ bills.
The agreement reached with 70% of the Puerto Rico Electric Power Authority’s bondholders would have cut its debt by $600m and relaxed terms on more than $700m in debt payments in return for the more secure new bonds. Officials warn the utility will run out of cash by summer without debt restructuring, possibly prompting power cuts.
Bondholders offered to extend the legislative deadline but wanted to change terms of a $115m loan that would have provided liquidity to PREPA, but the authority found the new conditions unacceptable.
“We are disappointed that the (bondholder) group did not grant our requested extension. PREPA remains willing to continue discussions,” said the authority’s chief restructuring officer, Lisa Donahue. She said bond insurers and bank lenders agreed to the extension without changing terms of the loan.
The island faces a total debt of $72 billion, or less than one month’s worth of the $85 billion Obama gave to the Wall Street criminals in the form of Quantitative Easing.
These same criminals hold much of Puerto Rico’s debt, as they hold most of the debt in the world.
When will the general public wake up to the fact that will live in the most unequal period in the history of the world, all created by violence and finance. A handful of families own more wealth than all the rest of us, including the Forbes 400 frontmen billionaires who take the face time for the Rothschilds, Rockefellers, and a few others.
Sam Walton bought his first store in 1950 in Bentonville, Arkansas, when those families had generations of super wealth. Did they take vows of poverty?
Slaves to a few families.


No comments:

Post a Comment