Seeks Full Payment of Debt and Post-Bankruptcy Interest from Insolvent Public Utility; Oversight Board Remains Ready and Willing to Move Forward with Reasonable Debt Restructuring
San Juan, PR – July 14, 2026 – The Financial Oversight and Management Board for Puerto Rico today takes notice of the decision by certain non-settling bondholders of the Puerto Rico Electric Power Authority to reject outright the Oversight Board’s significant offer to resolve PREPA’s bankruptcy under Title III of PROMESA.
Bondholders today again asserted their claim of approximately $12 billion against PREPA, Puerto Rico’s public utility and only provider of electricity, based on a pre-bankruptcy claim of approximately $8.5 billion plus interest since 2017 – far more than what the people of Puerto Rico can repay. The non-settling bondholders did not provide a counteroffer.
The Oversight Board is keenly aware of the burden PREPA’s bankruptcy is putting on Puerto Rico. That is why, on June 1, 2026, the Oversight Board proposed to non-settling bondholders a $3 billion settlement that would almost double the previous offer in its current Plan of Adjustment and said it was willing to negotiate a contingent value instrument as a path to a fair, sustainable, and legally sound resolution of PREPA’s debt restructuring.
The Oversight Board was hoping this significant increase would re-engage non-settling bondholders in mediation. But today, a group of those non-settling bondholders simply dismissed the offer as “dead on arrival.”
The Oversight Board reiterates that its June offer is reasonable given PREPA’s precarious financial condition. PREPA’s just released fiscal year 2023 audited financial statements raised “substantial doubt” about its ability to continue as a going concern[1]. PREPA’s finances have not improved since.
The Oversight Board continues to be willing to engage with all creditors constructively and believes that good-faith negotiations, as in previous restructurings of Puerto Rico’s massive debt, offer the best way to also resolve the PREPA debt efficiently and in a manner that serves the interests of Puerto Rico’s residents, businesses, and electric system.