On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with Debtwire Legal Analyst Paul Gunther and Reporter Simone Baribeau on the recent court ruling that PREPA bonds are secured.

Last month, the First Circuit Court of Appeals ruled that PREPA [Puerto Rico Electric Power Authority] bondholders have a secured USD 8.5bn claim on the utility’s net revenues.

Paul Gunther kicks off the podcast by providing background on PREPA and the bonds. He then segues into how the dispute between PREPA and the bondholders arose.

The conversation shifts to the lower court ruling that was overturned by the appellate decision. Paul discusses how the appellate court arrived at different conclusions.

Paul proceeds to discuss the First Circuit ruling also extends the lien to future net revenues and were perfected.

Paul then explains how the First Circuit came to the conclusion that this was a USD 8.5bn secured claim.

Paul concludes with providing the actions that the Financial Oversight & Management Board for Puerto Rico can take following this decision.

Simone segues the conversation into the significance of this court decision for PREPA and the municipal bond market.

The podcast concludes with Simone providing her perspective on what’s next in the PREPA restructuring.