The executive director of a federal control board that oversees Puerto Rico’s finances said that it is “impossible” for the U.S. territory to pay the $8.5 billion bondholders are demanding in a bankruptcy case involving the island's power company.
Robert Mujica Jr. unveiled a new fiscal plan for Puerto Rico's Electric Power Authority on Tuesday, stating that the government can pay creditors $2.6 billion. The plan, requested by a federal judge overseeing the case, does not call for any rate increases to help pay off the company's debt of more than $9 billion and the projected expenses are higher than those in the previous fiscal plan.
