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 RESPONSES FILED BY JANET COLON COSME [ECF NO. 

18170], CARLOS E. GALAN KERCADO [ECF NO. 18169], AND WILLIAM 

MALDONADO MORALES [ECF NO. 18553] TO THE THREE HUNDRED NINETYTHIRD OMNIBUS OBJECTION (SUBSTANTIVE) TO LATE-FILED CLAIMS

To the Honorable United States District Judge Laura Taylor Swain:

The Commonwealth of Puerto Rico (“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).

Case:17-03283-LTS Doc#:20013 Filed:02/02/22 Entered:02/02/22 20:30:13 Desc: Main

Document Page 1 of 8
2

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

(“PROMESA”), 2 file this reply (the “Reply”) in support of the Three Hundred Ninety-Third

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 Late-Filed Claims

[ECF No. 17975] (the “Three Hundred Ninety-Third Omnibus Objection”). In support of this 

Reply, the Debtors respectfully represent as follows:

1. On August 25, 2021, the Debtors filed the Three Hundred Ninety-Third Omnibus 

Objection seeking to disallow certain proofs of claim that were late-filed and, accordingly, failed 

to comply with the terms of the applicable Bar Date Orders3 (collectively, the “Claims to Be 

Disallowed”), each as listed on Exhibit A thereto. As set forth in the Three Hundred Ninety-Third 

Omnibus Objection and supporting exhibits thereto, the Claims to Be Disallowed were filed after 

the applicable Bar Date: (i) June 29, 2018 at 4:00 p.m. (Atlantic Time), for creditors of the 

Commonwealth, COFINA, HTA, and ERS, or (ii) July 29, 2020 at 4:00 p.m. (Atlantic Time), for 

creditors of PBA. Accordingly, pursuant to the terms of the Bar Date Orders, each of the holders 

of the Claims to Be Disallowed are barred from asserting a claim against the Debtors, and the 

Debtors are discharged from any and all liabilities to such claimants.

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

required to file a response by 4:00 p.m. (Atlantic Standard Time) on October 18, 2021 in 

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

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

subject to the Omnibus Objections, the U.S. Trustee, and the Master Service List (as defined in the 

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

3 Capitalized terms not defined herein shall the meaning ascribed to them in the Three 

Hundred Fifty-First Omnibus Objection.

Case:17-03283-LTS Doc#:20013 Filed:02/02/22 Entered:02/02/22 20:30:13 Desc: Main

Document Page 2 of 8
3

Fifteenth Amended Notice, Case Management and Administrative Procedures [ECF No. 17127-

1]). See Certificate of Service [ECF No. 18060].

3. The following responses addressing the Three Hundred Fifty-First Omnibus 

Objection were interposed:

• An untitled response [ECF No. 18553] (the “Maldonado Morales Response”) filed 

by claimant William Maldonado Morales (“Maldonado Morales”),

• Reply to the Omnibus Objection [ECF No. 18169] (the “Galán Kercadó Response”) 

filed by claimant Carlos E. Galán Kercadó (“Galán Kercadó”), and

• Reply to Omnibus Objection [ECF No. 18170] (the “Colón Cosme Response,” and 

together with the Maldonado Morales Response and the Galán Kercadó Response, 

the “Responses”) filed by claimant Janet Colón Cosme (“Colón Cosme,” and 

together with Maldonado Morales and Galán Kercadó, the “Claimants”).

I. Maldonado Morales Response

4. On August 10, 2021—over three years after the Commonwealth’s Bar Date—

Maldonado Morales filed a proof of claim against the Commonwealth, which was logged by Prime 

Clerk as Proof of Claim No. 179488 (the “Maldonado Morales Claim”). The Maldonado Morales 

Claim asserts “over $5,000” in liabilities on the basis of “Promesa Title III (Promise Title III).”

5. The Maldonado Morales Response, a Spanish-language letter, dated October 14, 

2021, was filed with the Court on October 18, 2021 and docketed as ECF No. 18553 on October 

19, 2021. Therein, Maldonado Morales explains that the Maldonado Morales Claim may have 

been submitted late for one of several reasons: (i) following Hurricane Maria on September 20, 

2017, Maldonado Morales had to temporarily relocate to Texas due to shortages of power and 

water, and the “[t]he post office in the town of Peñuelas was closed for a long time and upon our 

returning from Texas [in May 2018] we had many letters, but we had other priorities at the time”; 

(ii) following the earthquake on December 29, 2019, Maldonado Morales had to temporarily 

Case:17-03283-LTS Doc#:20013 Filed:02/02/22 Entered:02/02/22 20:30:13 Desc: Main

Document Page 3 of 8
4

relocate to a relative’s home in Puerto Rico, and the town was again left with intermittent power; 

and (iii) the COVID-19 pandemic. Maldonado Morales Resp. at 1-2.

6. The Federal Rules of Bankruptcy Procedure, applicable to Title III proceedings 

pursuant to section 310 of PROMESA, permit late filed claims if the failure to timely file the claim 

“was the result of excusable neglect.” Fed. R. Bankr. P. 9006(b)(1). “Excusable neglect” 

requires the court to weigh the mistake or neglect against other equitable factors such as “the 

danger of prejudice to the debtor, the length of the delay and its potential impact on judicial 

proceedings, the reason for the delay, including whether it was within the reasonable control of 

the movant, and whether the movant acted in good faith.” In re Puerto Rico Hospital Supply, 

Inc., No. 19-01022, 2020 WL 7133165, at *2 (D.P.R. Dec. 4, 2020) (quoting Pioneer Inv. Servs. 

v. Brunswick Assoc. Ltd. P’ship, 507 U.S. 380, 395 (1993)).

7. The Debtors are deeply mindful of the serious impacts upon the people of Puerto 

Rico of the various natural disasters they have endured since the commencement of the Title III 

Cases. However, the information provided in the Maldonado Morales Response does not 

establish that Maldonado Morales’s failure to timely file the Maldonado Morales Claim resulted 

from excusable neglect. As an initial matter, the length of delay in filing the Maldonado Morales 

Claim—over three years—is very substantial. Further, Maldonado Morales has not provided an 

adequate explanation for this lengthy delay. Although Maldonado Morales describes the 

adversity he faced due to Hurricane María, the earthquakes, and the COVID-19 pandemic, 

Maldonado Morales acknowledges that he had access to his mail prior to the Commonwealth’s 

Bar Date. Maldonado Morales Resp. at 2. Furthermore, many of the claimants who filed timely 

claims had to endure similar adversity, but were able to comply with the applicable Bar Dates. In 

addition, although Maldonado Morales contends that the earthquakes in Puerto Rico in late 2019 

Case:17-03283-LTS Doc#:20013 Filed:02/02/22 Entered:02/02/22 20:30:13 Desc: Main

Document Page 4 of 8
5

and early 2020 and the COVID-19 pandemic beginning in March 2020 prevented him from filing 

a claim, these events occurred a year and a half or more after Maldonado Morales’s return to Puerto 

Rico in May 2018. Maldonado Morales does not explain why he could not file a proof of claim 

prior to these natural disasters.

8. Accordingly, because the Maldonado Morales Response does not establish that 

Maldonado Morales’s failure to timely file the Maldonado Morales Claim resulted from excusable 

neglect, the Maldonado Morales Claim should be disallowed as late-filed.

II. The Galán Kercadó Response

9. On August 4, 2021—over three years after ERS’s Bar Date—Galán Kercadó filed 

three proofs of claim against ERS, which were logged by Prime Clerk as Proof of Claim Nos. 

179467, 179468, and 179469 (collectively, the “Galán Kercadó Claims”). The Galán Kercadó

Claims assert liabilities in varying amounts against ERS purportedly arising from Galán Kercadó’s 

pension contributions.

10. The Galán Kercadó Response, a Spanish-language letter, dated September 13, 

2021, was filed with the Court on September 20, 2021 and docketed as ECF No. 18169 on 

September 21, 2021. Therein, Galán Kercadó explains that he had an original proof of claim, 

Proof of Claim No. 137467 (the “Original Galán Kercadó Claim”). On or about July 21, 2021, 

Galán Kercadó alleges he discovered “a document that contained a list of plaintiffs on which my 

name did not appear, and I proceeded to investigate the reason.” Galán Kercadó Resp. at 2. 

Galán Kercadó alleges that he “sent the proof, and it was accepted since I was given claim 

number[s]” for the Galán KercadóClaims.

11. The Original Galán Kercadó Claim, however, was disallowed as deficient by this 

Court because it failed to provide sufficient information to permit the Debtors to reconcile the 

Case:17-03283-LTS Doc#:20013 Filed:02/02/22 Entered:02/02/22 20:30:13 Desc: Main

Document Page 5 of 8
6

claim, and because Galán Kercadó failed to respond to an information request form sent by the 

Debtors. See First Order Granting in Part One Hundred Twenty-Seventh Omnibus Objection 

(Non-Substantive) of the Commonwealth of Puerto Rico and Employees Retirement System of the 

Government of the Commonwealth of Puerto Rico to Deficient Claims Asserting Interests based 

on Salary Demands, Employment or Services Provided [ECF No. 12680]. 

12. To the extent Galán Kercadó filed the Galán Kercadó Claims in an attempt to 

provide additional evidence in support of the Original Galán Kercadó Claim, Galán Kercado does 

not explain why such evidence was not submitted in response to the Debtors’ information requests 

or in response to the One Hundred Twenty-Seventh Omnibus Objection (Non-Substantive) of the 

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

Commonwealth of Puerto Rico to Deficient Claims Asserting Interests based on Salary Demands, 

Employment or Services Provided [ECF No. 9897]. Nor does the Galán Kercadó Response 

provide any basis for Galán Kercadó’s failure to file a timely proof of claim.

13. Accordingly, because the Galán KercadóResponse does not dispute that the Galán 

Kercadó Claims were not timely filed, and does not provide an explanation for Galán Kercadó’s 

failure to file a timely proof of claim, the Galán KercadóClaims should be disallowed as late-filed.

III. The Colón Cosme Response

14. On August 4, 2021—over three years after ERS’s Bar Date—Colón Cosme filed 

three proofs of claim against ERS, which were logged by Prime Clerk as Proofs of Claim Nos. 

179470, 179471, and 179472 (collectively, the “Colón Cosme Claims”). The Colón Cosme

Claims assert liabilities in varying amounts against ERS for pension contributions.

15. The Colón Cosme Response, a Spanish-language letter, dated September 13, 2021, 

was filed with the Court on September 20, 2021 and docketed as ECF No. 18170 on September 

Case:17-03283-LTS Doc#:20013 Filed:02/02/22 Entered:02/02/22 20:30:13 Desc: Main

Document Page 6 of 8
7

21, 2021. Therein, Ms. Colón Cosme explains that she had an original proof of claim, Proof of 

Claim No. 164805 (the “Original Colón Cosme Claim”). On or about July 21, 2021, Ms. Colón 

Cosme claims she discovered “a document that contained a list of plaintiffs on which my name 

did not appear, and I proceeded to investigate the reason.” Colón Cosme Resp. at 2. In response, 

Ms. Colón Cosme proceeded to submit the Colón Cosme Claims.

16. The Original Colón Cosme Claim, however, was disallowed as deficient by this 

Court because it failed to provide sufficient information to permit the Debtors to reconcile the 

claim, and because Colón Cosme failed to respond to an information request form sent by the 

Debtors. See First Order Granting in Part One Hundred Fifty-Fifth Omnibus Objection (NonSubstantive) of the Commonwealth of Puerto Rico, Puerto Rico Highways and Transportation 

Authority, and Employees Retirement System of the Government of the Commonwealth of Puerto 

Rico to Miscellaneous Deficient Claims [ECF No. 12672] (the “One Hundred Fifty-Fifth Omnibus 

Objection Order”). 

17. To the extent Colón Cosme filed the Colón Cosme Claims in an attempt to provide 

additional evidence in support of the Original Colón Cosme Claim, Colón Cosme does not explain 

why such evidence was not submitted in response to the Debtors’ information requests or in 

response to the One Hundred Fifty-Fifth Omnibus Objection (Non-Substantive) of the 

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

Commonwealth of Puerto Rico to Deficient Claims Asserting Interests based on Salary Demands, 

Employment or Services Provided [ECF No. 9944]. Nor does the Colón Cosme Response provide 

any basis for Colón Cosme’s failure to file a timely proof of claim.

Case:17-03283-LTS Doc#:20013 Filed:02/02/22 Entered:02/02/22 20:30:13 Desc: Main

Document Page 7 of 8
8

18. Accordingly, because the Colón Cosme Response does not dispute that the Colón 

Cosme Claims were not timely filed, and does not provide an explanation for Colón Cosme’s 

failure to file a timely proof of claim, the Colón Cosme Claims should be disallowed as late-filed.

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

Case:17-03283-LTS Doc#:20013 Filed:02/02/22 Entered:02/02/22 20:30:13 Desc: Main

Document Page 8 of 8