NEW YORK--(BUSINESS WIRE)--The Ad Hoc Group of PREPA Bondholders met with Alix Partners and Millstein & Co on 23 April to receive the Puerto Rico Electric Power Authority’s (PREPA) response to the Ad Hoc Group’s revitalization plan (Revitalization Plan) for Puerto Rico.
“We appreciate PREPA and its advisors providing detailed feedback in response to the Ad Hoc Group’s revitalization plan. The Ad Hoc Group looks forward to working with PREPA and its professionals to refine a long-term plan for PREPA that is in the best interest of all stakeholders. However, while we have had limited time to review PREPA’s critiques, we believe that a number of the criticisms are based on fundamentally flawed analysis or a misunderstanding of our proposal,” said Stephen Spencer of Houlihan Lokey, the Ad Hoc Group’s financial advisor.
The Ad Hoc Group’s revitalization plan would invest $2 billion of capital to modernize PREPA’s aging generation fleet, comply with environmental regulations, provide meaningful economic growth in Puerto Rico, and improve safety for PREPA’s employees. It would also provide PREPA customers with stable electricity rates that are significantly lower than recent historical rates and create thousands of new sustainable jobs, while continuing to service contractual debt obligations. While the Ad Hoc Group and its advisors strongly disagree with a number of the criticisms presented by PREPA, the Ad Hoc Group looks forward to working constructively with PREPA and its advisors to reconcile outstanding differences in a continuing effort to bring novel, cost-effective solutions to the various issues currently facing the utility.