Page 71 - KPA JULY 24 2015

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WORLD NEWSFriday 24 July 2015
Volcano called Kick ‘em Jenny rumbling off Grenada
LINDA STRAKER
DAVID McFADDEN
Associated Press
ST. GEORGE’S, Grenada
(AP) — An active underwa-
ter volcano off Grenada’s
northern coast called Kick
‘em Jenny was rumbling
Thursday and regional di-
saster authorities were put
on alert even as they said it
posed no threat of trigger-
Puerto Rico power company rejects bondholders’ plan
SAN JUAN, Puerto Rico
(AP) — Puerto Rico’s pow-
er company on Thursday
rejected a new proposal
from bondholders that
calls for an $8.1 billion debt
exchange amid grow-
ing concerns the public
agency could be the first
one in the U.S. territory to
go bankrupt. The Electric
Power Authority said the
proposal would not lead
to a successful restructur-
ing and does not share the
burden of its more than $9
billion debt.
“It imposes disproportion-
ate risks on ratepayers and
other creditors,” the com-
pany said in a statement.
“In addition to being un-
achievable, it is not sup-
ported by other creditor
constituencies such as the
bond insurers or the revolv-
Paulson company to buy Puerto Rico hotel in $20M deal
SAN JUAN, Puerto Rico (AP)
— A company of New York
hedge fund billionaire John
Paulson reached a $20 mil-
lion deal to buy and reno-
vate a recently closed ho-
tel in Puerto Rico’s tourist
district, officials said Thurs- bankruptcy amid the U.S.
day.
Paulson & Co. will develop
the San Juan Beach Hotel
into an ultra-luxury bou-
tique hotel in the popular

ing a destructive tsunami. hasn’t caused any deaths Grenada’s west coast as the water column.
Since its discovery in the or injuries. gas-rich magma bubbles. Under the alert, all boats
1930s, Kick ‘em Jenny has The Seismic Research Cen- Center researchers put the must stay at least 5 kilome-
erupted beneath the sur- ter at the University of the alert level at “orange,” ters (3 miles) from the vol-
face of the Caribbean Sea West Indies said seismic which means an eruption cano.
at least 12 times, most re- activity had increased at could take place within 24 Kick ‘em Jenny poses the
cently in 2001. the submerged volcano, hours. An eruption would greatest threat to mariners
The underwater volcano, which is just 8 kilometers (5 stir up high waves and heat since the gases it releases
which rises some 1,300 me- miles) north of Grenada. surrounding waters to boil- can lower the density of
ters (4,265 feet) above the Recreational divers have ing temperatures. Scientists the water so significantly
seafloor on a steep slope reported seeing some “de- say the volcano can also vessels can lose buoyancy
of the Lesser Antilles ridge, gassing” on the seafloor off shoot hot rocks up through and sink.q

A protestor holds a sign that reads in Spanish: “We didn’t take not been publicly released. for external financing with
out a loan. We didn’t see a dime. We’re not going to pay.” during At the time, the Los Ange- consumers directly benefit-
a protest in the financial district in San Juan, Puerto Rico. Puerto les-based investment bank ing from this approach by
Rico’s power company on Thursday rejected a new proposal Houlihan Lokey, an adviser way of lower, more stable
from bondholders that calls for an $8.1 billion debt exchange. to bondholders, said parts rates and a more modern
of the plan were positive and reliable utility,” said
(AP Photo/Ricardo Arduengo) but that others were un- Stephen Spencer, a man-
workable and needed fur- aging director at Houlihan
ing fuel line lenders.” ted a long-awaited restruc- ther negotiation. The group Lokey.
The negotiations between turing plan that calls for a represents 40 percent of Power bills in Puerto Rico
the power company and minimum investment of bondholders, which overall are on average twice that
the bondholders group $2.3 billion and a revision of own $8 billion of the pow- in the U.S. mainland given
comes nearly two months rate structures, among oth- er company’s debt. In its the government’s heavy
after the agency submit- er things. The full plan has new counterproposal, the reliance on petroleum.
bondholders group states While Gov. Alejandro Gar-
that privatizing genera- cia Padilla has said he sup-
tion could lower rates as it ports privatizing power pro-
proposed delaying debt duction and has pushed
payments for $2.5 billion to find alternate energy
in savings it said could be sources, Lisa Donahue, the
invested elsewhere by the power company’s chief
power company. restructuring officer, has
“These savings would fund said Puerto Ricans will see
billions in capital invest- some sort of rate increase
ment for (the power com- regardless of what type of
pany) without the need final plan is approved.q
Condado neighborhood, reach $2 billion by year’s Alejandro Garcia Padilla Resort & Casino in Isla
according to Puerto Rico’s end. The company already said in a statement. “Our Verde for $71 million along
Department of Commerce owns the Vanderbilt Hotel economic development with partners Fundamental
and Economic Develop- and La Concha Resort in plan is working.” Advisors LP and Aimbridge
ment. Condado, as well as the St. The investment is a boost Hospitality. They said the
The seaside hotel previ- Regis Bahia Beach Resort in for an island entering its resort will remain a Hilton
ously filed for Chapter 11 the northeast municipality ninth year in recession and brand and will see a $35
of Rio Grande. struggling with $72 billion in million renovation.
territory’s worsening eco- “Paulson’s continued in- public debt. The announcements come
nomic crisis. vestment in Puerto Rico is Government officials also a day after the Conda-
Government officials said a testament to my adminis- announced that private do Plaza Hilton closed its
Paulson & Co.’s invest- tration’s efforts to generate equity firm Leon, Mayer & casino after 40 years of
ments on the island could economic growth,” Gov. Co. is buying El San Juan operation.q