PREPA Bondholders Applaud U.S. First Circuit Court of Appeals Ruling and Look Forward to Reaching Fair Resolution to End Bankruptcy

Bondholders of the Puerto Rico Electric Power Authority (“PREPA”), including GoldenTree Asset Management, LP and Assured Guaranty Municipal Corp. and Assured Guaranty Inc. (the “PREPA Bondholders”), commented on yesterday’s decision by the United States Court of Appeals for the First Circuit in the PREPA bankruptcy.

The PREPA Bondholders issued the following statement:

“We are pleased with the First Circuit Court of Appeals’ decision reinstating the bondholders’ claim for the principal amount of the bonds plus matured interest (approximately $8.5 billion) and finding that the claim is secured by all of PREPA’s past, present, and future Net Revenues. The decision restores the municipal market’s understanding of the proper functioning of special revenue bonds.

The PREPA Bondholders remain hopeful that the Puerto Rico government and the Oversight Board will engage in a constructive fashion to reach a fair resolution of the PREPA restructuring that allows the Commonwealth to move past its bankruptcy proceedings and focus its efforts on providing services to the island’s citizens. A consensual emergence from bankruptcy will best position the people of Puerto Rico for economic success and allow the island to achieve its goal of re-accessing the capital markets as an investment grade issuer, and the PREPA Bondholders remain ready to engage.”

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