PREPA gets lifeline from lenders

The Puerto Rico Electric Power Authority late yesterday agreed with its lenders for them not to exercise remedies available to them after Moody's further downgraded the utility into junk territory last week. Under the deal, PREPA may delay certain payments currently due until the end of the month.

PREPA says it will continue discussions with its lenders and will use the extra time to evaluate its alternatives.

MBIA (MBI -2.4%) briefly spiked when the headline hit yesterday afternoon, but has resumed lower. Assured Guaranty (AGO -0.6%).

Comments (3)
  • tom bernardi
    , contributor
    Comments (479) | Send Message
    big hole for MBI. no silver bullet here
    8 Jul 2014, 10:26 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11225) | Send Message
    Will this action put MBIA out of business?
    8 Jul 2014, 11:41 AM Reply Like
  • tom bernardi
    , contributor
    Comments (479) | Send Message
    broken arrow
    8 Jul 2014, 12:13 PM Reply Like
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