Federal Judge Tentatively Approves Restructuring Plan for Puerto Rico Power Company's $10 Billion Debt

New Proposal Aims to Cut Debt by 80%, Potentially Raising Power Bills

A federal judge has tentatively approved a portion of the latest plan to restructure $10 billion of debt owed by Puerto Rico’s power company.
The overall debt restructuring plan has been amended four times this year by a federal control board that oversees Puerto Rico’s finances.
The newest proposal seeks to cut the power company’s debt by nearly 80%, to some $2.5 billion.
If approved, the plan is expected to lead to increases in residential and commercial power bills that already are among the highest of any U.S. jurisdiction.
The power company is Puerto Rico's only agency that has yet to restructure its debt since the territory's government announced in 2015 that it was unable to pay its more than $70 billion public debt.