Governor Jenniffer González Colón stated that despite the amount of money offered, the bondholders of the Puerto Rico Electric Power Authority (PREPA) lack the willingness to reach an agreement to end the company’s bankruptcy process. The Governor mentioned that the Oversight Board (JSF) proposed a mediation offer to the bondholders on June 1, but it was not accepted.
The JSF offered $3 billion or 35 cents on the dollar, which is higher than the 19 cents on the dollar offered two and a half years ago. González Colón said that this shows that no matter how much the government offers, the bondholders are not willing to negotiate. The Governor noted that the JSF’s offer could be structured in cash, a combination of cash and secured bonds, but the terms and source of repayment were not provided. The bondholders’ group declined to comment on the proposal.