CNE Analyzes the New PREPA Restructuring Support Agreement: It is Worse Than You Think
On May 3, 2019, the Puerto Rico Electric Power Authority (“PREPA”), the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), and the Financial Oversight and Management Board for Puerto Rico (the “FOMB”), executed a “Definitive Restructuring Support Agreement” (the “RSA”), with the members of the Ad Hoc Group of PREPA Bondholders (the “Ad Hoc Group”), and Assured Guaranty Corp. and Assured Guaranty Municipal Corp. (collectively, “Assured”), for the restructuring of a portion of certain bonds issued by PREPA.