Mediation team in PREPA’s bankruptcy seeks extension of talks to October

It is the 12th time since it was appointed in April 2022 that the mediation team has requested an extension of talks to settle the Puerto Rico Electric Power Authority’s $9 billion debt.

By The Star Staff

The team mediating a settlement of the Puerto Rico Electric Power Authority’s (PREPA) debt between the utility and creditors has asked the federal Title III court to extend the termination date of the mediation to Oct. 31, 2025.

PREPA has been in bankruptcy since 2017 to settle a $9 billion debt. It is the 12th time since it was appointed in April 2022 that the mediation team has requested an extension of talks.

The team, through the Financial Oversight and Management Board, in March engaged the services of PJT Partners as financial adviser for an initial period of six months at $1 million per month, arguing that it “will play a key role assisting the Mediation Team as it continues to engage with all stakeholders to fashion and facilitate a possible settlement.”

At the same time that the parties are pursuing a parallel litigation related to the bankruptcy, the Mediation Team and PJT will be actively engaging with the parties to discuss the terms of a proposed plan of adjustment that could bring the case to conclusion, consensually and with finality, the mediation team said in a motion last week.

“The Mediation Team and PJT are planning to hold a series of meetings with certain Mediation Parties during the months of May and June,” the mediation team said in its request to the court for a six-month extension of the mediation process.

“As the Court well knows, the negotiation process is time-consuming given the number of stakeholders and the complexity of the issues,” the team said.