PREPA mediation extended to April 28

The Puerto Rico Electric Power Authority bankruptcy’s mediation process to has been extended to April 28 by Laura Taylor Swain, district judge for the U.S. District Court of the Southern District of New York.
Mediation had been scheduled to end this coming Tuesday.

The three-person mediation team on Monday requested the extension. They said while no mediation was currently taking place it was a good idea to keep open the possibility. The team expects mediation to resume in the “coming weeks and may well continue for some time thereafter.”

The Puerto Rico Oversight Board, the Ad Hoc Group of PREPA Bondholders, Assured Guaranty Corp., Assured Guaranty Municipal Corp., and Syncora Guarantee Inc. all support the extension.

However, bondholders and bond insurers complained the mediation process was supposed “to produce a confirmable plan that is the product of ‘substantive engagement’ with PREPA bondholders and other parties. Unfortunately, that did not happen,” as the board pursued litigation and have not engaged in “substantive mediation discussions” since December 16.

The board told The Bond Buyer it “remains ready and willing to negotiate with all parties having unresolved issues.”

In other developments in the PREPA bankruptcy, Swain scheduled oral arguments on the summary judgement motion on an adversary proceeding for Wednesday. She has limited the arguments on the issue of the extent of the bondholders’ lien on PREPA revenues to no more than three hours.