A deal to restructure Puerto Rico’s troubled power utility’s $8.2 billion bond debt fell apart early Saturday, after lawmakers missed a Friday midnight deadline to approve key conditions for the proposed bond swap, including putting a debt payment charge directly on customers’ bills, AP reported. The agreement reached with 70% of the Puerto Rico Electric Power Authority’s bondholders would have cut its debt by $600 million and relaxed terms on more than $700 million in debt payments in return for the more secure new bonds. Officials warn the utility will run out of cash by summer without debt restructuring, possibly prompting power cuts.
