Late last year, the Puerto Rico Electric Power Authority (PREPA) and its creditors reached an innovative deal that laid the foundation for other future consensual restructuring agreements aimed at addressing Puerto Rico’s $72 billion debt burden. This deal is regarded as important enough that it was widely lauded by a broad cross section of political leadership in Puerto Rico, and the bipartisan Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA") enacted by the U.S. Congress and signed by President Obama includes specific language to protect it.
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Setting the Record Straight on the PREPA Deal