SAN JUAN, Puerto Rico (AP) — A plan to restructure more than $9 billion in debt held by Puerto Rico’s ailing power company hit a big snag this week after a group of bondholders terminated their deal with a federal control board overseeing the U.S. territory’s finances.
The deal would have allowed Puerto Rico’s government to pay creditors $2.6 billion instead of the full $8.5 billion that some bondholders are demanding.
BlackRock Financial Management and other investment funds had agreed to the board’s deal and its subsequent amendments two years ago. But they walked away after the Trump administration terminated all but one member of the federal control board overseeing debt negotiations.
On Monday, bondholder groups that had opposed the board’s proposals filed a document noting that BlackRock and others were joining them in a deal that would become effective on Oct. 1. The enlarged group now holds or insures nearly 90% of outstanding bonds issued by Puerto Rico's power company, according to a court filing.
Experts have said the dismissal of almost the entire board could lead to the appointment of new members who might be favorable to hedge funds seeking full repayment.
Earlier this year, the board’s executive director said it was “impossible” for the U.S. territory to pay the $8.5 billion that some bondholders are seeking.
Puerto Rico has one of the highest power bills of any U.S. jurisdiction, and many worry that if a debt-restructuring deal is not reached with bondholders, they’ll be hit with a massive rate hike to pay off the debt of the island’s Electric Power Authority.
A spokesperson for the board declined to comment.
Some bondholders have said that litigation over the power company’s debt should be suspended until a new board is appointed. Meanwhile, the board said in a brief filing that it prefers some processes be halted, but that it would defer to the judge overseeing the case.
It wasn't immediately clear how quickly new board members would be appointed.
The board was created in 2016 under the Obama administration, a year after Puerto Rico’s government declared it was unable to pay its more than $70 billion public debt load and later filed for the biggest municipal bankruptcy in U.S. history.
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FILE - Pigeons perch on power lines in Santurce, a neighborhood in San Juan, Puerto Rico, as Hurricane Erin approaches, Aug. 15, 2025. (AP Photo/Alejandro Granadillo, File)
KOHALA, Hawai‘i--(BUSINESS WIRE)--Jan 15, 2026--
Kuleana Rum Works, the Hawai‘i-based distillery known for its additive-free, award-winning rums, today announced the release of “An Open Letter on Additive-Free Rum,” written by Founder & CEO Steve Jefferson, addressing why rum is now facing the same scrutiny and market shift that reshaped tequila a decade ago.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260107792953/en/
Consumers across spirits are demanding more honesty about how products are made. Additive-free labeling has already transformed tequila and is reshaping whiskey and RTDs. Drinkers now expect producers to protect natural flavor instead of masking it, and bartenders increasingly use transparency as a measure of quality. The letter positions rum as the next category entering this accountability cycle, as more consumers begin to question undisclosed sweeteners, flavorings and added color.
Tequila provides the clearest precedent. Producers who embraced additive-free methods helped premiumize the category, while brands relying on undisclosed additives now face growing skepticism. According to the letter, rum is approaching the same turning point. Jefferson explains that Kuleana Rum Works was founded on additive-free principles: growing heirloom Hawaiian kō (sugarcane), fermenting and distilling fresh juice at lower proof to preserve natural character, adding nothing after distillation and holding all blending partners to the same standards. Every rum — whether distilled in Hawai‘i or sourced — is verified additive-free through independent lab testing and supplier documentation.
“Consumer expectations are changing fast across spirits,” said Steve Jefferson, Founder and CEO of Kuleana Rum Works. “People want honesty in what they drink, and they’re rewarding producers who protect natural flavor rather than covering it up. Additive-free isn’t a trend — it’s becoming the standard, and rum is now facing that shift head-on.”
Additional detail in the letter underscores how production choices such as fresh juice fermentation, low-proof distillation and a strict no-additives policy create transparency and flavor integrity that align with what the market is valuing.
About Kuleana Rum Works
Founded on the island of Hawai‘i in 2013, Kuleana Rum Works crafts award-winning, additive-free rums — led by its signature Hawaiian Rum Agricole® — from fresh kō (heirloom Hawaiian sugarcane) grown on its regenerative Kohala farm. Now available in 17 states and Japan, Kuleana Rum Works champions excellence, transparency and community stewardship. Visit kuleanarum.com to learn more.
https://kuleanarum.com/additive-free/
