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PREPA Turnaround Boss Casts Doubt On Bondholder Fix

Law360, New York (April 14, 2015, 4:00 PM EDT) -- The restructuring officer charged with digging the Puerto Rico Electric Power Authority out of debt threw cold water Tuesday on the chance that a $2 billion capital investment proposal from forbearing creditors would prevent the bond defaults expected by municipal watchers.

In testimony before a Puerto Rico Senate oversight panel, AlixPartners LLP’s Lisa Donahue took issue with “aggressive assumptions” about future revenue generation contained in a bondholder group’s offer to finance PREPA’s planned operational reorganization.

In return for stronger lender protections, creditors holding some 60 percent...
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