Robert Mujica, executive director of Puerto Rico's Financial Oversight and Management Board, said Tuesday afternoon that a group of creditors of the Puerto Rico Electric Power Authority (PREPA/AEE) flatly rejected a $3 billion offer intended to settle debt and end the utility's bankruptcy. The Board had raised its offer by $1.4 billion from an original $1.6 billion proposal, hoping it would satisfy creditors.
Instead, non-consenting bondholders dismissed the offer as "destined to fail" and reaffirmed their $12 billion claim against PREPA — Puerto Rico's sole electricity provider — based on pre-bankruptcy claims of roughly $8.5 billion plus interest accrued since 2017. Mujica noted these bondholders did not present a counteroffer.
He maintained that the Board's June offer remains reasonable given PREPA's precarious finances, pointing to the utility's recently published fiscal year 2023 audited financial statements, which raised "substantial doubts" about its ability to continue as a going concern. Mujica added that PREPA's financial situation has not improved since those statements were released.