Restructuring Support Agreement Prepa

“We have long advocated for the solution to Puerto Rico`s difficulties to lie in amicable comparisons,” said Dominic Frederico, President and CEO of Assured Guaranty. “This tally builds on the work that, prior to the adoption of PROMESA in 2016, successfully produced an earlier version of an RSA for PREPA. Today, we are pleased to have reached an agreement with the Supervisory Board, the Commonwealth and other bondholders regarding prepapa, and we believe that the restructuring transaction outlined in this new RSA can form the basis of an effective and consensual plan to ensure reliable and affordable electricity for the people of Puerto Rico. We are committed to continuing to work with prepa and other stakeholders to implement this plan. Martin Bienenstock told U.S. District Court Judge Laura Taylor Swain that the board wants a further postponement, this time for a March 31 hearing on the deal, although lawyers for two bond insurance companies said they would oppose the delay. A representative of the House stated that the panel wanted to “ensure that Parliament has sufficient time to review and pass the legislation necessary to implement the agreement.” In its analysis, Marxuach arrives at the following conclusions: PREPA continues negotiations with its monoline bond insurers in order to reach an agreement on an amicable recovery programme between all the major financial players. The main economic conditions of the agreement are: As a general rule, the RSA provides that bondholders agree to settle their rights against PREPA and their disputes in search of a beneficiary with PREPA and, in addition, to agree to vote in favour of prePA Title III Correction Plan. In return, the ruling parties agreed to propose an adjustment plan that restructures PREPA`s bond debt on terms acceptable to bondholders by exchanging unpaid PREPA bonds for new securitization obligations (on terms set out in the RSA and related documents).

In addition, the ruling parties within the RSA have agreed to grant bondholders certain settlement payments, administrative debts and expense reimbursements. In addition, the new RSA introduced even higher fees for taxpayers than the restructuring agreement proposed last year. “After ten months of additional negotiations, we finally got the same reduction in capital and higher transition costs than we would have paid under the July 2018 RSA,” Marxuach said, adding: “… If Puerto Rico remains too generous with its creditors, there is an increasing chance of a new debt crisis in the short to medium term.┬áThe restructuring transaction described in the RSA is intended, among other things, to provide a framework for the amicable processing of PREPA insurance obligations for Assured Guaranty`s revenue in PREPA`s turnaround plan.