Puerto Rico's PREPA gets extension from creditors

NEW YORK, July 31 Thu Jul 31, 2014 2:26pm EDT

NEW YORK, July 31 (Reuters) - Lenders who provide Puerto Rico's electric power authority with lines of credit agree to extend a payment deadline until Aug. 14, giving the troubled authority time to consider more financing options, the authority known as PREPA said on Thursday.

PREPA also said it is in talks with creditors and insurers of more than 60 percent of its debt regarding obtaining near-term liquidity. PREPA uses the credit lines to fund operations such as oil purchases for its generators.

"This latest show of support from our bondholders, bond insurers and lenders provides us with additional time to evaluate all available options to ensure we are reaching the best possible outcome for our employees, customers, creditors and suppliers," said Juan F. Alicea Flores, Executive Director for PREPA. (Reporting by Edward Krudy; Editing by James Dalgleish)

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