The mediation team overseeing negotiations over the Puerto Rico Electric Power Authority's (AEE) debt has suspended the services of its financial advisor, PJT Partners, citing circumstances that leave little room to advance talks between the Fiscal Oversight Board and PREPA's creditors. The decision, effective August 16, was disclosed in the mediation team's 23rd report filed Monday before federal Judge Laura Taylor Swain. Mediators Shelley C.
Chapman and Brendan L. Shannon stated, "Unfortunately, there is little PJT can do under the current circumstances." The suspension does not end mediation, which formally remains in effect until October 31, 2026, following multiple court-granted extensions; the advisor's services could be reactivated if conditions change. The report cites the failure of the Board's June 30 debt settlement proposal to win bondholder support, and notes the Board has since neither presented a new proposal nor filed an amended adjustment plan for PREPA with the court.
It also notes PREPA still lacks a certified Fiscal Plan for 2026 — the most recent one was certified February 6, 2025 — and that the Board currently has no restructuring advisor.