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Federal Appeals Court Rules Bondholders Claim $8.5 Billion from Puerto Rico Electric Power Authority, Potential Rate Hike Ahead.

A federal appeals court has ruled that bondholders for Puerto Rico’s government-owned utility, the Puerto Rico Electric Power Authority (PrePA), have a claim to about $8.5 billion in revenue and interest from the utility. The decision could result in higher electricity rates for the U.S. territory. The court did not award the amount, which will be decided by a lower bench. This victory is a victory for bondholders who had previously opposed a debt restructuring plan by the Financial Oversight and Management Board for Puerto Puerto Rico.

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