THE Commonwealth Development Authority has agreed to reduce the Commonwealth Utilities Corp.’s $106 million debt by 37 percent.
CDA waived $40 million in interest to reach an out-of-court settlement with CUC, according to the memorandum of agreement passed by the House of Representatives yesterday together with two bills that would approve the settlement agreement reached by CDA and CUC last week.
CUC’s debt originated from three separate loans for capital improvement projects that totaled $51.6 million. This ballooned to $106 million due to interests.
House Speaker Heinz S. Hofschneider, R-Saipan, said once H. B. 13- 106 and H.B. 13-107 are signed into law, the memorandum of agreement will become effective.
Rep. Joseph P. Deleon Guerrero, R-Saipan and chairman of the House Public Utilities, Transportation and Communication, introduced the bills which now go to the Senate for action. The signatories of the memorandum are CDA Chairman Juan S. Tenorio and CUC Chairman Edward C. Sablan.
