Puerto rico could test its new restructuring law as early as next week if, as expected, the island's power provider, Puerto Rico Electric Power Authority, or PREPA, skips a US$10m interest payment to Citigroup. Barely a week before the payment was due, Puerto Rico Governor Alejandro Garcia Padilla approved a new restructuring regime intended to allow certain public corporations to restructure under court protection, similar to US Chapter 11 bankruptcy. Restructuring experts say that the law, the Puerto Rico Public Corporation Debt Enforcement and Recovery Act, was crafted to restructure debt that would otherwise be nearly impossible to restructure.
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