A federal judge overseeing the debt-restructuring process for Puerto Rico's Electric Power Authority has ordered all parties to mediation in an effort to resolve the impasse that has hindered progress. The power company holds over $10 billion in debt and other claims, making it the largest debtor among the island's state agencies. Previous attempts to restructure the debt have failed, negatively impacting the island's ability to attract investors and leaving residents with some of the highest electric bills in any U.S. jurisdiction.
The judge emphasized the need for swift action, stating that movement is necessary to reach a resolution. A two-month stay on litigation was imposed, urging all parties to engage in good-faith negotiations immediately. The judge also reminded the parties to consider the well-being of Puerto Rico's people throughout the mediation process.
