A judge granted Puerto Rico’s power authority, also known as Prepa, access to a $300 million loan late Monday, preventing the government-run utility from being forced to ration power.
Prepa, which is $9 billion in debt, said without additional funding, parts of the island would be plunged back into darkness within days.
The cash will come from the government’s general fund, which requires court-approval to access since the island is undergoing a Title III debt-restructuring process.
Puerto Rico’s Governor, Ricardo Rossello, reiterated this week that Prepa will eventually require $1 billion in order to keep the power utility running over the longer-term. The $300 million loan is expected to maintain operations until the end of next month.
During an interview with FOX Business last week, Secretary Manuel Laboy Rivera of Puerto Rico’s Department of Economic Development and Commerce (DEDC), expressed confidence that Prepa would receive additional funding.
