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PREPA Bondholders Back $2B Capital Investment Plan

Law360, New York (April 1, 2015, 5:37 PM EDT) -- Puerto Rico Electric Power Authority bondholders are touting a plan that would funnel nearly $2 billion into the beleaguered public utility for new infrastructure investment, saying the plan would reduce rates by 20 percent, make the utility more environmentally friendly and provide much-needed economic stimulus to the indebted island.

PREPA, which is weighed down by nearly $9 billion in debt, missed interest payments and allegedly violated loan covenants last year, amid a shrinking revenue base, high fixed costs and junk bond ratings. Bondholders say the plan...
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