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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), a troubled public utility, should take action on up to $1.8 billion it is owed, mainly by customers, including cutting off services to public corporations 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 have helped bring the utility to the edge of bankruptcy.It is unclear how much of its outstanding debts PREPA could ultimately collect. Puerto Rico's cash strapped government entities owe $758 million with some public corporation failing to make even current payments on their electricity bills and simply refusing to accept payments plans."A few of these public corporations have been offered payment plans to make partial payments on their current bills, but have refused to make even those payments," the report by the Annapolis, Maryland-based business consultancy. "It is critical that PREPA, at a minimum, receives current payments for public corporation usage while it works out solutions on the past due amounts."

FTI Consulting, Inc. (FTI Consulting) is a global business advisory firm. Shares of FCN fell by 1.03% or $-0.42/share to $40.44. 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 78113.