CDA acting Executive Director Oscar Camacho said this is how they can help CPA address its financial problems.
CPA borrowed $10 million from CDA and still has to pay $6 million, which the ports authority now wants “waived.”
CPA has to pay CDA $68,000 a month, but has been behind in its payments.
Camacho said he cannot disclose further details about the loan citing the confidentiality of agreement between the two agencies.
In his letter to CPA acting Executive Director Lee Cabrera, Camacho said CDA board wants to “discuss with you alternatives and options to cure the default.”
CPA, Camacho said, informed CDA that the ports authority’s “response” will be based on the yet to be completed bond rating.
CPA wants a debt write-off so it can address its bond indenture problems.
Camacho said that although a formal proposal from CPA has yet to be received by CDA, he is opposed to the idea.
He said the financial problems of CPA and the Commonwealth Utilities Corp. are not the same.
He said CUC’s loan was not “forgiven as what many seem believe.”
Camacho said CUC’s $45.5 million debt was converted into stocks, which means that CDA has now a stake at the cash-strapped utilities agency.
The stock conversion, he said, is governed by a memorandum of agreement that has not been finalized.
CPA said that due to the 60 percent reduction in its revenues, it expects its debt service ratio will be an issue for its seaport revenue bond.
CPA, which remains under the control of the governor, is expected to increase its airport fees.
