SAN JUAN, Puerto Rico (AP) — Puerto Rico’s power agency has taken longer than anticipated after a lot of collectors rejected a model new debt restructuring plan filed late Friday following years of failed negotiations. It seems doomed to chapter.

The Federal Board of Trustees, which oversees the island’s funds, has submitted a plan that proposes to cut virtually half of the larger than $10 billion in debt held by Puerto Rico’s Power Authority, the most important native authorities firm.

Board Chairman David Skeel warned that residents and corporations in U.S. territories will “pay for this significantly lowered debt by way of their electrical power funds.”

“Nonetheless[the power companies]wish to maneuver on and Puerto Rico desires reliable power,” he said.

The announcement angered many Puerto Ricans already burdened by the acute monetary catastrophe and the most recent rise in electrical power prices.

The Board well-known that two programs of collectors agreed to assist the plan. This goes previous the licensed requirement {{that a}} federal select might want to haven’t lower than one creditor uphold it for it to be completely enforced.

Noting that an settlement could not be reached between the holders and guarantors of $7.6 billion of utility bonds, Skir added that the plan would allow them to affix the settlement class as an selection.

“Puerto Rican residents and corporations are unable to pay the portions demanded by some collectors proper now,” he said, together with that the board is open to further negotiations. I hope you uncover it.”

The Advert Hoc Group, which contains firms that non-public or guarantee virtually half of the utility’s debt, rejected the plan, calling it “very coercive” and saying it may solely lengthen the company’s virtually six-year chapter. I warned you.

“An important losers on this debacle are the islanders,” said Stephen Spencer of Houlihan Lokey, the group’s financial adviser.

The drawn chapter already costs over $200 million in licensed costs as litigation and arbitration negotiations proceed.

Mr. Spencer well-known that utilities have canceled three debt restructuring agreements since 2015, and Gov. Pedro Pierluisi launched in March that he would reject the latest plan.

A federal select overseeing Puerto Rico chapter circumstances ordered new mediation talks in September after earlier mediation talks failed.

Puerto Rico didn’t pay larger than $70 billion in public debt in 2015 and has restructured virtually all of it since saying two years later it had filed for chapter of the most important municipality in U.S. historic previous.

The flexibility agency’s debt is the one one in dispute, and resolving it is believed to help enchantment to merchants to the island and improve its monetary development.