UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

THE COMMONWEALTH OF PUERTO RICO, et al.

Debtors.1

PROMESA

Title III

Case No. 17-BK-3283-LTS

(Jointly Administered)

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO

as representative of

PUERTO RICO ELECTRIC POWER AUTHORITY,

Debtor.

PROMESA

Title III

Case No. 17-BK-4780-LTS

Re: ECF No. 2636

STATUS REPORT OF GOVERNMENT PARTIES

REGARDING COVID-19 PANDEMIC AND 9019 MOTION

 1 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last 

four (4) digits of each Debtor’s federal tax identification number, as applicable, are the (i) Commonwealth of 

Puerto Rico (Bankruptcy Case No. 17-BK-3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto 

Rico Sales Tax Financing Corporation (“COFINA”) (Bankruptcy Case No. 17-BK-3284-LTS) (Last Four Digits 

of Federal Tax ID: 8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case 

No. 17-BK-3567-LTS) (Last Four Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the 

Government of the Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17-BK-3566-LTS) (Last Four 

Digits of Federal Tax ID: 9686); (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 

17-BK-4780-LTS) (Last Four Digits of Federal Tax ID: 3747); and (vi) Puerto Rico Public Buildings Authority 

(“PBA”) (Bankruptcy Case No. 19-BK-5523-LTS) (Last Four Digits of Federal Tax ID: 3801) (Title III case 

numbers are listed as Bankruptcy Case numbers due to software limitations).

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To the Honorable United States District Court Judge Laura Taylor Swain:

The Puerto Rico Electric Power Authority (“PREPA”), by and through the Financial 

Oversight and Management Board for Puerto Rico (the “Oversight Board”), as the Debtor’s sole 

Title III representative pursuant to section 315(b) of the Puerto Rico Oversight, Management, and 

Economic Stability Act (“PROMESA”),2 and the Puerto Rico Fiscal Agency and Financial 

Authority (“AAFAF,” and collectively with PREPA and the Oversight Board, the “Government 

Parties”), as the entity authorized by Puerto Rico law to act on behalf of PREPA pursuant to the 

Enabling Act of the Fiscal Agency and Financial Advisory Authority, Act 2-2017, respectfully 

submit this status report (the “Status Report”), regarding the response to the COVID-19 pandemic 

and the status of the 9019 Motion.3

Background

1. On October 4, 2021, the Government Parties filed their most recent Status Report 

of the Government Parties Regarding the COVID-19 Pandemic and the 9019 Motion [ECF No. 

2627] (the “October 4, 2021 Status Report”) addressing, among other things, (i) ongoing efforts to 

mitigate the effects of COVID-19 on the island (¶¶ 4–5), (ii) the status of negotiations with certain 

of the bondholders that are parties to the RSA (the “RSA Bondholders”) and with the government 

(¶¶ 6–8), (iii) litigation surrounding the LUMA Operation and Management Agreement (the 

“LUMA O&M Agreement”) (¶ 9), (iv) and LUMA’s transformation efforts (¶¶ 10–13). The 

Government Parties requested that the adjournment of the 9019 Motion remain in place, and that 

 2 PROMESA is codified at 48 U.S.C. §§ 2101–2241.

3 See Joint Motion of Puerto Rico Electric Power Authority and AAFAF Pursuant to Bankruptcy Code 

Sections 362, 502, 922, and 928, and Bankruptcy Rules 3012(a)(1) and 9019 for Order Approving Settlements 

Embodied in the Restructuring Support Agreement [Case No. 17-BK-4780-LTS, ECF No. 1235] (the “9019 

Motion”).

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they be permitted to provide the Court an updated status report on their position on or before 

January 19, 2022. Id. ¶¶ 14–15.

2. In response to the October 4, 2021 Status Report, on October 5, 2021, the Official 

Committee of Unsecured Creditors (the “Committee”) filed the Official Committee of Unsecured 

Creditors’ Response and Objection to Status Report of the Government Parties Regarding the 

Covid-19 Pandemic and the 9019 Motion [ECF No. 2628] (the “Committee Response”). The 

Committee requested that the Court deny the Government Parties’ request to prolong the stay of 

the 9019 Motion pending submission of a further status report on January 19, 2022.

3. On October 8, 2021 the Court entered an order directing the Government Parties to 

file an updated status report on or before January 19, 2022. See Order Concerning Status Report 

of the Government Parties Regarding the COVID-19 Pandemic and the 9019 Motion [ECF No.

2548].

4. On December 14, 2021, the Oversight Board provided an update on the general 

status of work toward PREPA’s plan of adjustment as requested by the Court in its Order 

Regarding Procedures for December 15-16, 2021, Omnibus Hearing [Case No. 17 BK-3283, ECF 

No. 19430]. See Status Report of Financial Oversight and Management Board in Connection With 

December 15–16, 2021 Omnibus Hearing, ¶¶ 8–11 [Case No. 17 BK-3283, ECF No. 19514] (the 

“Omnibus Hearing Status Report”). The Oversight Board incorporates its statements related to 

PREPA in the Omnibus Hearing Status Report into this Status Report. 

Update on Conditions on the Island

5. Since the submission of the October 4, 2021 Status Report, the COVID-19 omicron 

variant has caused a spike in infection rates across the nation, including Puerto Rico where the 

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positivity rate reportedly jumped from 2% in mid-December to over 30% in January.

4

 Governor 

Pierluisi has implemented certain restrictions to reduce the spread of COVID-19, including: (i) a 

mandate that businesses where food or drink are consumed must operate at reduced capacity and 

require proof of vaccination or a negative COVID-19 test,

5 (ii) a curfew on businesses and the sale 

of alcohol from midnight to 5:00 a.m.,6 (iii) mandatory testing requirements for all air travelers,

7

and (iv) a ban on mass gatherings of more than 250 people.8 In addition, the start of classes at all 

public schools was delayed until January 24, 2022.9 As of January 18, 2022, it was reported there 

were 241,612 confirmed cases of COVID-19 and 3,524 total deaths caused by the disease on the 

Island since its outbreak.10

6. Fully reopening the Commonwealth remains dependent on administration of the 

COVID-19 vaccines to the Island’s population. The Government has expanded its distribution of 

the COVID-19 vaccines, and, as of November 2, 2021, all Puerto Rico residents age five and older 

were eligible to be vaccinated.11 Reportedly, as of January 18, 2022, 2,510,679 residents had been 

fully vaccinated and 842,574 residents had received booster doses of the COVID-19 vaccine.

12

 4 Cristina Corujo, Puerto Rico’s COVID-19 positive rate jumps from 2% to over 30% in just two weeks, ABC 

News, https://abcnews.go.com/US/puerto-ricos-covid-19-positive-rate-jumps-30/story?id=81986677.

5 Executive Order No. OE-2021-081, available at: https://www.estado.pr.gov/en/executive-orders/; 

Executive Order No. OE-2021-085, available at: https://www.estado.pr.gov/en/executive-orders/.

6 Executive Order No. OE-2021-086, available at: https://www.estado.pr.gov/en/executive-orders/.

7 Executive Order No. OE-2021-081, available at: https://www.estado.pr.gov/en/executive-orders/.

8 Executive Order No. OE-2021-086, available at: https://www.estado.pr.gov/en/executive-orders/.

9 AP News, Puerto Rico delays start of classes amid COVID-19 surge, 

https://apnews.com/article/coronavirus-pandemic-health-education-caribbean-puerto-rico0260e8424bd8fb201b4a0026b53aef2b.

10 Departamento de Salud, COVID-19 Cases in Puerto Rico, available at https://covid19datos.salud.gov.pr/. 

11 AP News, Puerto Rico to make COVID-19 vaccine mandatory for school, available at

https://apnews.com/article/coronavirus-pandemic-health-puerto-rico-20d91d161130d84ef788a8632adfd3cf.

12 Departamento de Salud, COVID-19 Cases in Puerto Rico, available at https://covid19datos.salud.gov.pr/. 

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Governor Pierluisi has also directed that vaccinations and boosters are mandatory for all health 

and safety personnel.

13 The Government continues with hosting COVID-19 testing events 

throughout Puerto Rico to monitor the spread of the virus and take any necessary measures on a 

timely basis.

Evaluation of the RSA

7. The Oversight Board has determined at this point to move forward with the 

settlement set forth in the RSA, and the Government Parties will continue to assess the feasibility 

and advisability of its implementation. The terms of the RSA require certain legislation, including 

legislation to establish the securitization structure of the proposed new bonds, the transition charge 

needed to support the prospective debt service, and certain protections against the diminution of 

transition charge revenues caused by reduced demand for energy provided by PREPA. Whether 

the Puerto Rico Legislature will support the RSA remains an open question. The Oversight Board 

has discussed the legislation needed to implement the RSA with certain legislative leaders, who 

indicated they will be in a position to evaluate it in February. A prior version of this legislation 

was previously discussed with the RSA Parties.

8. Advancing PREPA’s plan of adjustment is therefore a primary focus, and the 

Oversight Board continues efforts to propose a plan of adjustment for PREPA by the end of March 

2022. This date, however, is dependent on certain factors outside the Government Parties’ control 

that might push the filing of a plan into the second quarter of 2022. The Oversight Board remains

committed to the terms of the RSA if all its terms can be carried out, but is also evaluating 

alternatives. The Oversight Board continues to work with the Governor and Legislature to 

 13 Executive Order No. OE-2021-082, available at: https://www.estado.pr.gov/en/executive-orders/; 

Executive Order No. OE-2021-087, available at: https://www.estado.pr.gov/en/executive-orders/.

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implement the RSA and believes that it is in the public’s best interest. In the event necessary 

legislation is not enacted to implement the RSA, the Government Parties will evaluate alternatives 

without new legislation.

9. Since the filing of the October 4, 2021 Status Report, the Government Parties have 

continued progress on other key objectives of PREPA’s restructuring that will enable filing a plan 

of adjustment, such as transformation. PREPA and the P3 Authority continue to move toward 

transition of PREPA’s legacy generation assets to private operators. In December, the PREPA 

governing board approved resolutions to separate legacy generation, real estate and hydroelectric 

assets into separate subsidiaries as required by the Operation and Maintenance Agreement with 

LUMA Energy LLC.

14 The creation of the new subsidiaries, PREPA Genco LLC, PREPA 

PropertyCo LLC, and PREPA HydroCo LLC, remains subject to approval by the Puerto Rico 

Energy Bureau. 

Next Steps

10. As described above, the Government Parties remain focused on assessing the RSA 

and successfully implementing a plan of adjustment for PREPA on the stated timeline. The

Oversight Board will remain engaged in discussions with the RSA Bondholders, while also 

undertaking discussions with the Governor and Legislature regarding the legislation required to 

implement the RSA transactions, and considering potential alternatives to file a plan of adjustment 

as expeditiously as possible. 

11. Since the adjournment of the 9019 Motion, the Government Parties have provided 

regular status reports to the Court regarding the progress of their evaluations, and they will 

 14 See Reorg, PREPA Governing Board Moves to Spin Off Generation, Real Estate Hydro Subsidiaries as 

LLCs; Creation of Grid Subsidiary on Hold Until After Title III Restructuring, available at 

https://app.reorg.com/v3#/items/intel/1869?item_id=163693.

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continue to do so. Accordingly, the Government Parties suggest they provide the Court an updated 

status report on the Government Parties’ position on or before March 31, 2022. The Government 

Parties intend to continue using this time to advance PREPA’s transformation and find the best 

restructuring that is practicable.

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Dated: January 19, 2022

San Juan, Puerto Rico

O’MELVENY & MYERS LLP

/s/ Maria J. DiConza

John J. Rapisardi (pro hac vice)

Maria J. Diconza (pro hac vice)

7 Times Square 

New York, NY 10036 

Telephone: (212) 326-2000 

Facsimile: (212) 326-2061 

Email: jrapisardi@omm.com 

nmitchell@omm.com

mdiconza@omm.com 

-andPeter Friedman (pro hac vice)

1625 Eye Street, NW 

Washington, DC 20006 

Telephone: (202) 383-5300 

Facsimile: (202) 383-5414 

Email: pfriedman@omm.com 

-andElizabeth L. McKeen (pro hac vice)

Ashley M. Pavel (pro hac vice)

610 Newport Center Drive, 17th Floor 

Newport Beach, CA 92660 

Telephone: (949) 823-6900 

Facsimile: (949) 823-6994 

Email: emckeen@omm.com 

Attorneys for the Puerto Rico Fiscal 

Agency and Financial Advisory 

Authority and Puerto Rico Electric Power 

Authority

Respectfully submitted,

PROSKAUER ROSE LLP

/s/ Martin J. Bienenstock 

Martin J. Bienenstock (pro hac vice)

Paul V. Possinger (pro hac vice)

Ehud Barak (pro hac vice)

Daniel S. Desatnik (pro hac vice)

Eleven Times Square

New York, NY 10036

Tel: (212) 969-3000

Fax: (212) 969-2900

Attorneys for the Financial Oversight and 

Management Board as representative for the 

Debtors

O’NEILL & BORGES LLC

/s/ Hermann D. Bauer 

Hermann D. Bauer

USDC No. 215205

250 Muñoz Rivera Ave., Suite 800

San Juan, PR 00918-1813

Tel: (787) 764-8181

Fax: (787) 753-8944

Co-Attorneys for the Financial Oversight and 

Management Board as representative for the 

Debtors

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MARINI PIETRANTONI MUÑIZ, LLC 

/s/ Luis C. Marini-Biaggi 

Luis C. Marini-Biaggi 

USDC 222301 

250 Ponce de León Ave., Suite 900 

San Juan, Puerto Rico 00918 

Tel.:(787) 705-2171 

Email: lmarini@mpmlawpr.com 

Co-Attorneys for the Puerto Rico Fiscal 

Agency and Financial Advisory 

Authority

DÍAZ & VÁZQUEZ LAW FIRM, P.S.C.

 /s/ Katiuska Bolaños 

Katiuska Bolaños 

USDC-PR No. 231812 

290 Jesús T. Piñero Ave. 

Oriental Tower, Suite 803

San Juan, PR 00918 

Tel: (787) 395-7133 

Fax: (787) 497-9664 

Email: kbolanos@diazvaz.law 

Attorneys for Puerto Rico Electric Power 

Authority

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