(Bloomberg) -- Puerto Rico’s Electric Power Authority and its creditors will keep negotiating through Sept. 9 to strike a potential deal to reduce $9 billion of debt.
A mediation team that manages the debt talks said it needs more time beyond an Aug. 15 deadline for discussions, according to a court filing Monday.
“Based on recent developments, negotiations are continuing to make progress in the mediation process and the mediation team believes it is beneficial to continue the mediation process and extend the mediation termination date (and all related deadlines) to Sept. 9, 2022,” according to the court filing.
Last month, US District Court Judge Laura Taylor Swain gave the parties through Aug. 15 to submit a restructuring plan, a term sheet for a deal, a litigation schedule, or a memorandum of law showing why the court shouldn’t dismiss the power utility’s bankruptcy case. She also allowed the mediation team to extend -- without court approval -- that Aug. 15 deadline through Sept. 9, if it chooses.
Prepa, what the utility is known as, is the island’s main supplier of electricity and has been in bankruptcy since July 2017. It’s been negotiating with bondholders and insurance companies since 2014 on how to reduce its debt obligations.
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