Puerto Rico News Digest For October 4, 2016

WEATHER SYSTEM COULD BECOME STORM

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From The National Hurricane Center:

"Showers and thunderstorms continue in association with a low pressure area 
located about 500 miles northeast of Puerto Rico. Satellite wind data indicate 
that the low is producing winds to gale force, and the system could become su-
fficiently well organized to result in the formation of a tropical storm later today.  
The low is expected to move generally northwestward at 10 to 15 mph over the 
next few days, and upper-level winds are forecast to become less conducive for 
development. Formation chance through 48 hours...high...80 percent. Formation 
chance through 5 days...high...80 percent..."

BOARD SETS DEADLINE FOR TURNAROUND PLAN

From The San Juan Daily Star:

"Puerto Rico’s newly created federal oversight board on Friday set an Oct.14
deadline for the island’s governor to draft a fiscal turnaround plan, as protesters
at its first public meeting compared the board to “slavery” and said it was “pilla-
ging Puerto Rico.” The board asked Gov. Alejandro García Padilla to present a
plan laying out his vision for stabilizing Puerto Rico, which is grappling with $70
billion in debt, a 45 percent poverty rate and a decade-long recession..."

DONAHUE TO TESTIFY ABOUT BLACKOUT

From Caribbean Business:

"The Senate Committee on Energy and Water Resources has summoned the ch-
ief restructuring officer of the Puerto Rico Electric Power Authority (Prepa), Li-
sa Donahue, to appear Tuesday as part of the hearings that began last week to in-
vestigate the possible reasons that led to the collapse the electrical system on Sep-
tember 21 and the delay in the restoration of electrical service. The president of the
committee, Popular Democratic Party Sen. Ramón Luis Nieves, said that Donahue
should give details before the Senate panel about the work done by her firm, Alix
Partners, since it was hired by Prepa in September 2014 to restructure the utility’s
debt and transform the operations of the public corporation..."

CUSTOMS SEIZES $1.5M IN COUNTERFEIT GOODS

From News Is My Business:


"U.S. Customs and Border Protection San Juan Field Operations announced today
that 206 seizures where made of counterfeit products, valued at $1.5 million, wh-
ich were illegally imported into Puerto Rico via international mail. A wide range
of counterfeited products was seized during the enforcement effort, called “Oper-
ation Silver Snake 2,” to include: consumer products, apparel, footwear, textiles,
pharmaceuticals, and more, the agency said. Various international mail packages
inspected by CBP officers at the San Juan International Mail Branch revealed pro-
ducts that infringedintellectual property rights. The majority of the seized products
originated in China, the agency said..."

Puerto Rico News Digest For August 16, 2016

PUERTO RICO ZIKA CASES SEE BIG JUMP

From The San Juan Daily Star:

"Health Secretary Ana Ríus announced Friday that for the epidemiological week
number 30 some 1,914 new cases of Zika were confirmed in the island, for a total
of 10,690 accumulated cases since the virus first arrived in Puerto Rico. The new
data includes 134 pregnant women for a total of 1,035. In addition, two more peo-
ple have been hospitalized for a total of 90 and there are three new cases of Guilla-
in-Barré syndrome for a total of 30 confirmed cases in laboratories. “We have in
our hands the necessary tools to avoid being infected with the Zika virus,” Ríus
said in a written statement. “Even if we don’t feel sick, we need to protect our-
selves..."

MURDERS IN AGUAS BUENAS & LAS PIEDRAS

As reported by El Nuevo Dia, a man between 20 and 25 years of age was murde-
red on road PR-173 in Aguas Buenas. The killing was reported at around 2:50 AM
this morning, and police found the body 15 minutes later. The man, of approxima-
tely 140 pounds, with black hair and beard, has yet to be identified. A second mur-
der was reported at approximately 5:50 AM on road PR-916 in Las Piedras. A 911
call alerted police to a bleeding person in the area. Police found the body minutes
later.

DONAHUE GETS $6.7M CONTRACT EXTENSION

From Caribbean Business:

"On the heels of what was described as a rather drawn-out meeting punctuated
by several sticking points, the Puerto Rico Electric Authority’s (Prepa) board vo-
ted to extend the contract of AlixPartners, headed by Lisa Donahue, to the tune
of $6.713 million. The contract, which was due to expire Aug. 15, will be exten-
ded through Dec. 15. “The deal is broken down with half the money for restruc-
turing-related work and the other half for operational related improvements,” said
one source with knowledge of negotiations. The restructuring work involves ma-
naging and reporting cash, working out all of the structure for the Special Purch-
ase Vehicle (SPV) and Prepa rate cases, continued implementation of creditor
deals and potential negotiations..."

MEDICAL POT INDUSTRY GROWS IN PR

From News Is My Business:

"...Already, more than two-dozen companies have applied for operational licen-
ses and others are expected to follow suit. One potential job creation opportunity
on the horizon is a high-tech system for “safe and consistent” cannabis cultivat-
ion that a U.S. firm is developing with the idea of possibly carrying out the pro-
duct assembly on the island, according to César Cordero Krüger, CEO of Grow-
blox Sciences Puerto Rico, LLC, a subsidiary of Las Vegas-based Growblox Sci-
ences, Inc., which is spearheading the technology..."

Puerto Rico News Digest For November 17, 2015

CIDRE JUMPS INTO 2016 GOVERNOR'S RACE

From The San Juan Daily Star:

"Businessman Manuel Cidre announced he would run for the governor’s
post as an independent candidate, becoming the second unaffiliated gub-
ernatorial hopeful following attorney Alexandra Lúgaro, who threw her
hat in the ring earlier this year. The founder of Los Cidrines Bakery, a
business he created with his brother Guillermo back in 1978, and the for-
mer president of the Puerto Rico Manufacturers Association, among oth-
er professional organizations, said he aspires to something different from
the traditional political machinery to make Puerto Rico governable again..."

PREPA EXTENDS LISA DONAHUE CONTRACT

From Caribbean Business:

"The Puerto Rico Electric Power Authority (Prepa) has extended its con-
tract with Chief Restructuring Officer Lisa Donahue and her team at Alix
Partners for another four months. Donahue and AlixPartners will be paid
nearly $7.3 million to continue their work in restructuring the utility’s debt
and transforming generation and distribution infrastructure. The contract
was set to expire Nov. 15, and will now stretch until March 15..."

MULTI-AGENCY PREPA INVESTIGATION BROADENS

From Richard Lawless:

"According to confidential sources, the multi-agency investigation into theft
at Puerto Rico’s largest utility, PREPA, has expended to include as many as
thirty-five current and former government officials. In an effort to seek redu-
ced charges, William Rodney Clark, Edwin Rodriquez and Cesar Torres Ma-
rrero have agreed to cooperate with the Puerto Rico U.S. Attorney office. This
cooperation is said to include payment journals, recorded conversations and
other materials."

IBERIA TO RESTART MADRID-PR FLIGHTS

From ATW:

"Iberia will resume flights between Madrid and San Juan, Puerto Rico on May
15, 2016, after a three-year absence on the route. The announcement was made
during the Latin American and Caribbean Air Transport Association (ALTA)
Airline Leaders Forum in San Juan..."

Puerto Rico News Digest For October 23, 2015

FEDS RAID HOUSING PROJECT

As reported this morning by El Nuevo Dia, federal agents have been
carrying out an operation since early this morning at Los Claveles
public housing project in Trujillo Alto. Agents are serving four sea-
rch warrants from the Immigration and Customs Enforcement agen-
cy (ICE). The operation has to do with drug trafficking and money
laundering, but ICE did not provide much in the way of further de-
tails, other than to say that illegal material was found among the
four apartments that were searched.  

PREPA TO PROPOSE 4 CENT RATE HIKE

From The San Juan Daily Star:

"The Puerto Rico Electric Power Authority (PREPA) plans to sub-
mit a new rate structure calling for a hike of around four cents, sour-
ces inside the utility said. The utility is still working on a study that
will help it decide what would be the appropriate rate. However, the
four-cent hike was the same as proposed by one of the utility’s insu-
rance companies. PREPA Chief Restructuring Offi cer Lisa Donahue
said on Tuesday that with the savings and cuts that have been made
at the utility, it expects to be able to submit a reasonable rate struct-
ure..."

SANDERS & WARREN BLAST VULTURE FUNDS

From News Is My Business:

"The two most prominent progressives in the U.S. Senate urged the
federal government Thursday to help Puerto Rico stand up against
the “vultures” they largely blame for the island’s current fiscal night-
mare. Sen. Bernie Sanders (I-VT), the chief rival of candidate Hilla-
ry Clinton for the 2016 Democratic presidential nomination, took ti-
me out of his packed campaign schedule to engage five witnesses —
including Puerto Rico Gov. Alejandro García-Padilla — who testifi-
ed at a hearing by the Senate Committee on Energy and Natural Re-
sources. Sanders, reeling off a raft of statistics on Puerto Rico’s de-
mographic and fiscal decline, called the island’s 56 percent poverty
rate among children a “human tragedy..."

OBAMA SEEKS BANKRUPTCY FOR PR

From The Chicago Tribune:

"President Barack Obama is pressing for Congress to give Puerto Rico
sweeping powers to reduce its $73 billion debt burden through bank-
ruptcy, escalating administration involvement as the Caribbean island's
access to cash dries up. Puerto Rico would be provided with a form of
bankruptcy protection not now available to American territories. Ad-
ministration officials also called for lawmakers late Wednesday to in-
crease health-care funding for Puerto Rico, extend tax credits to the
poor and put independent oversight in place to monitor the govern-
ment's budget..."

POPULAR POSTS $84.7 MILLION PROFIT

From Caribbean Business:

"Popular Inc. on Friday reported third-quarter net income of $84.7 mi-
llion. The Hato Rey, Puerto Rico-based bank said it had earnings of 82
cents per share. Earnings, adjusted for one-time gains and costs, were
90 cents per share. The a company that runs Banco Popular and other
banks in Puerto Rico and the U.S. posted revenue of $481.8 million in
the period..."

Puerto Rico News Digest For April 10, 2015

FATAL ACCIDENT ON EXPRESO LAS AMERICAS

Huge traffic jams are being experienced this morning by commuters
on Expreso Las Americas (PR-18), following a fatal auto accident
early this morning on the Caguas-bound side of the roadway. Traffic
had to be rerouted around Jesus T. Piñero due to lane closures. The
traffic back-ups have created a domino effect, and several nearby
roads and highways are severely congested as well. Police are reco-
mmending as alternate routes Avenues Piñero, Roosevelt or Domenech.
The accident responsible for the traffic involved a truck and five other
vehicles. The truck reportedly hit a Hyundai sedan, which was being
driven by a man who later died.

12 ARRESTED FOR CHILD PORNOGRAPHY

From Fox News:

Twelve suspects have been arrested on charges of child pornography
across Puerto Rico in the largest such operation in the  U.S. territory,
federal authorities said Thursday. Among those arrested were a former
police officer, a high school teacher and an Internal Revenue Service
employee, said Angel Melendez, special agent in charge of Homeland
Security Investigations in San Juan.

DRAG COMEDIAN ALEX SOTO DIES

From Int'l Business Times:

A popular Puerto Rican comedian and drag queen died Thursday
night from a heart attack after he underwent surgery from a foot
infection. Alex Soto had been recovering from the amputation of
his left foot when his heart gave out, said actress Veronica Ojeda
Rubio, a member of the Board of Actors Association Puerto Rico.

MERCK FINDS BUYER FOR CLOSING PLANT

From Fierce Pharma Mfg:

Merck ($MRK) put two of three plants in Puerto Rico on a hit list in
2013 as part of its efforts to cut costs and headcount. But after selling
one last year to Sanofi's ($SNY) animal health unit Merial, it has
found a buyer for the second, efforts that together will have saved
about 400 jobs on the island. Merck will sell its plant in Arecibo to
American Industrial Acquisition Corporation (AIAC), which will add
it to the 5 dozen other plants it has around the world making industrial
products.

MIGRANTS NABBED ON MONA ISLAND

From Jamaica Observer:

The United States Customs and Border Protection (CBP) agency
says its agents apprehended 10 undocumented Cuban and Dominican
Republic immigrants after they landed on a remote island off the
coast of Puerto Rico. The US Coast Guard also found a body floating
near the shore of Mona Island.

DONAHUE CITED FOR SENATE HEARING ON PREPA

From The San Juan Daily Star:

The Senate Energy Aff airs and Water Resources Committee cited
Puerto Rico Electric Power Authority (PREPA) Chief Restructuring
Officer Lisa Donahue for a public hearing this Friday to question her
about the utility’s debt restructuring plan. Donahue, who has not
completed the restructuring plan, has kept mum about details of the
plan, although she did say it entails $400 million in savings in the area
of operations at the utility.