The Puerto Rico Electric Power Authority paid all principal and interest due to bondholders on Wednesday, buying the troubled utility time as it works to reach a deal with creditors. The authority, also known as Prepa, said in a statement that it is funding the $415 million payment with about $153 million from its general fund and the rest from its debt-service reserves. Insurers that protect some of Prepa’s bonds agreed to buy $128 million in new short-term debt due by mid-December. “We are pleased we were able to reach an agreement that allowed us to make the payment to our bondholders today and avoid a default,” said Lisa Donahue, Prepa’s chief restructuring officer. “As a result of these agreements, we have preserved our cash position.” Puerto Rico also made a $645 million payment on some general-obligation bonds, according to a government spokeswoman. These bonds are backed by the commonwealth’s taxing powers. Prepa also agreed with creditors -- which include bondholders, banks and bond insurers -- to extend restructuring talks through mid-September, the authority said. A bondholders’ group said in a statement they would continue to work with Prepa to reach a long-term plan. In addition to negotiations about Prepa’s $9 billion in debt, the talks also involve plans to modernize the utility’s operations. An expanded version of this report appears at WSJ.com.