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Monday, November 17, 2014

Puerto Rico's PREPA urged to get tough on $1.8 billion owed, (NYSE: FCN)

The Puerto Rico Electric Power Authority (PREPA), the troubled public utility, should take action on up to $1.8 billion it is owed by customers, including cutting off services to public corporations which are not paying their bills, according to a report prepared by FTI consulting released on Monday.The report comes as part of an agreement with creditors that hold over $9 billion of the utility's debt and underscores the lax billing and collections practices that helped bring the utility to the edge of bankruptcy.The report also said PREPA should outsource collections of inactive accounts, overhaul its customer collection practices, and audit municipalities in order to reduce payments it makes to them in lieu of taxes.The report was the first of three studies commissioned as part of a restructuring of PREPA's business that was agreed upon in a forbearance agreement with bondholders. The restructuring could lead to a write down of PREPA's debt early next year.

FTI Consulting, Inc. (FTI Consulting) is a global business advisory firm. Shares of FCN fell by 1.0% or $-0.41/share to $40.45. In the past year, the shares have traded as low as $28.23 and as high as $46.73. On average, 286335 shares of FCN exchange hands on a given day and today's volume is recorded at 54487.