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

No. 17 BK 3283-LTS

(Jointly Administered)

This filing relates to the

Commonwealth and ERS.

REPLY OF THE COMMONWEALTH OF PUERTO RICO AND THE EMPLOYEES 

RETIREMENT SYSTEM OF THE GOVERNMENT OF THE COMMONWEALTH OF 

PUERTO RICO TO THE RESPONSE FILED BY EVA E. MELENDEZ FRAGUADA

[ECF NO. 19420] TO THE THREE HUNDRED NINETY-FOURTH OMNIBUS 

OBJECTION (NON-SUBSTANTIVE) TO EMPLOYEE CLAIMS ASSERTING 

LIABILITIES OWED BY ENTITIES THAT ARE NOT TITLE III DEBTORS

To the Honorable United States District Judge Laura Taylor Swain:

The Commonwealth of Puerto Rico (the “Commonwealth”) and the Employees Retirement 

System of the Government of the Commonwealth of Puerto Rico (“ERS,” and together with the 

Commonwealth, the “Debtors”), by and through the Financial Oversight and Management Board 

for Puerto Rico (the “Oversight Board”), as the sole Title III representative of the Debtors pursuant

 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 (the “Commonwealth”) (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” and together with the Commonwealth, COFINA, HTA, and ERS, the 

“Debtors”) (Bankruptcy Case No. 17 BK 4780-LTS) (Last Four Digits of Federal Tax ID: 3747) 

(Title III case numbers are listed as Bankruptcy Case numbers due to software limitations).

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to section 315(b) of the Puerto Rico Oversight, Management, and Economic Stability Act

(“PROMESA”),2 file this reply (the “Reply”) to the response [ECF No. 19420] (the “Melendez 

Fraguada Response”) filed by claimant Eva E. Melendez Fraguada (“Melendez Fraguada”) to the 

Three Hundred Ninety-Fourth Omnibus Objection (Non-Substantive) of the Commonwealth of 

Puerto Rico and the Employees Retirement System of the Government of the Commonwealth of 

Puerto Rico to Employee Claims Asserting Liabilities Owed by Entities that are Not Title III 

Debtors [ECF No. 18958] (the “Three Hundred Ninety-Fourth Omnibus Objection”). In support 

of this Reply, the Debtors respectfully represent as follows:

1. On October 29, 2021 the Debtors filed the Three Hundred Ninety-Fourth Omnibus 

Objection seeking to disallow claims asserting liabilities associated with allegedly unpaid wages 

or other employment benefits purportedly owed by entities that are not Title III debtors, each as 

listed on Exhibit A thereto (the “Claims to Be Disallowed”). Each of the Claims to Be Disallowed

fail to comply with the applicable rules, however, because they do not provide a basis for asserting 

a claim against the Commonwealth or any other Title III Debtor for liabilities purportedly owed 

by entities that are not Title III debtors.

2. Any party who disputed the Three Hundred Ninety-Fourth Omnibus Objection was 

required to file a response by 4:00 p.m. (Atlantic Standard Time) on November 29, 2021 in 

accordance with the Court-approved notice attached to the Three Hundred Ninety-Fourth Omnibus 

Objection as Exhibit C, which was served in English and Spanish on the individual creditors 

subject to the Three Hundred Ninety-Fourth Omnibus Objection, the U.S. Trustee, and the Master 

Service List (as defined in the Fifteenth Amended Notice, Case Management and Administrative 

Procedures [ECF No. 17127-1]). See Certificate of Service [ECF No. 19074].

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

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3. Melendez Fraguada filed a proof of claim against ERS on January 22, 2020, which

was logged by Prime Clerk as Proof of Claim No. 177716 (the “Melendez Fraguada Claim”). The 

Melendez Fraguada Claim asserts liabilities associated with allegedly accrued, but unpaid, pension 

contributions earned during her employment with the State Insurance Fund Corporation (by its 

Spanish acronym, “CFSE”), as well as other liabilities purportedly arising out of her employment 

with the CFSE.

3

 

4. CFSE, however, is a public corporation and independent entity that is legally 

separate from the Commonwealth. CFSE is also not a Title III debtor. However, neither the 

Melendez Fraguada Response nor the Melendez Fraguada Claim provides a basis for asserting a 

claim against ERS or any other Title III Debtor in respect of liabilities purportedly owed by CFSE, 

a separate and independent agency. 

5. Accordingly, because Melendez Fraguada has not provided a basis for asserting the 

portion of the Melendez Fraguada Claim asserting liabilities associated with her employment with 

CFSE against ERS or any other Title III Debtor, the Debtors respectfully request that the Melendez 

Fraguada Claim be partially disallowed, notwithstanding the Response. The portion of the 

Melendez Fraguada Claim asserting pension contributions will remain pending resolution via the 

administrative claims reconciliation process.

 3 The portion of the Melendez Fraguada Claim asserting liabilities associated with Melendez 

Fraguada’s pension contributions was previously transferred into the administrative claims 

reconciliation process. 

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Dated: February 2, 2022 Respectfully submitted,

San Juan, Puerto Rico

/s/ Hermann D. Bauer

Hermann D. Bauer

USDC No. 215205

Carla García Benítez

USDC No. 203708

O’NEILL & BORGES LLC

250 Muñoz Rivera Ave., Suite 800

San Juan, PR 00918-1813

Tel: (787) 764-8181

Fax: (787) 753-8944

/s/ Brian S. Rosen

Martin J. Bienenstock (pro hac vice)

Brian S. Rosen (pro hac vice)

PROSKAUER ROSE LLP

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 

Commonwealth of Puerto Rico and the 

Employees Retirement System of the 

Government of the Commonwealth of Puerto 

Rico

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