2015-12-19chicagotribune.com

Puerto Rico's electric utility reached a tentative agreement with insurance companies MBIA Inc. and Assured Guaranty Ltd., along with some bondholders, to restructure the utility's $8.2 billion of debt, according to two people with knowledge of the discussions.

The accord sets into motion what would be the largest-ever restructuring in the $3.7 trillion municipal-bond market and potentially averts a default on $196 million of interest due Jan. 1... It took more than a year of fitful negotiations for the agency known as Prepa to strike a deal with bondholders, who in November agreed to take losses of 15 percent.



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