Puerto Rico Electric Power Authority and its bondholders clashed before a federal judge over whether the creditors are entitled to the bankrupt utility’s future revenues.
US District Court Judge Laura Taylor Swain will consider whether Prepa, as the utility’s known, can limit the bondholders to existing funds, or if they can claim a lien on money collected in the future.
Tom Moers Mayer, a lawyer representing an ad hoc bondholder group, said during a hearing Wednesday that Swain’s decision would have implications beyond Puerto Rico, and could put such distressed debt at risk of repayment because all municipal revenue …
