PREPA Bondholder Group Comments on Governor Ricardo Rosselló’s Announcement of Decision to Privatize PREPA

The Puerto Rico Electric Power Authority (PREPA) Bondholder Group today released the following statement:

“The PREPA Bondholder Group has always welcomed a range of potential strategies to improve operations at PREPA, and we believe the American citizens that live in Puerto Rico would be better served by an electric utility run by a private operator with a proven track record, installed immediately, subject to existing PREC oversight and free from government interference. It is also imperative that plans for PREPA’s future do not cause anyone to lose sight of the pressing present day challenge: getting the lights back on for everyone on the island.

“We believe the only path for any proposal to deliver low cost and reliable power will be if it respects property rights, since failure to do so will result in years of litigation from multiple parties. The sole way to achieve this is to break the pattern of continued disregard for the law and past obligations and reach a consensus resolution with assorted stakeholders.”