Puerto Rico Electric Power investors to suffer interest loss under bondholder plan

New York

PUERTO Rico Electric Power Authority bondholders would be hit with a 33 per cent loss of interest income over eight years under an investor group's restructuring proposal, according to Richard Larkin at Herbert J Sims & Co.

"If that's the deal that's struck, clients that bought these bonds at par are getting sandbagged," said Mr Larkin, director of credit analysis in Boca Raton, Florida.