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UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF PUERTO RICO 

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 : 

In re: : 

 : 

THE FINANCIAL OVERSIGHT AND : PROMESA 

MANAGEMENT BOARD FOR PUERTO RICO, : Title III 

 : 

 as representative of : Case No. 17-BK-3283 (LTS) 

 : 

THE COMMONWEALTH OF PUERTO RICO, et al., : 

: 

(Jointly Administered) 

Debtors.1

 : 

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 : 

In re: : 

 : 

THE FINANCIAL OVERSIGHT AND : PROMESA 

MANAGEMENT BOARD FOR PUERTO RICO, : Title III 

 : 

 as representative of : Case No. 17-BK-4780 (LTS) 

 : 

PUERTO RICO ELECTRIC POWER AUTHORITY, et al., : 

: 

Debtors. : 

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 : 

THE FINANCIAL OVERSIGHT AND : Adv. Proc. No. 19-00391 (LTS) 

MANAGEMENT BOARD FOR PUERTO RICO, : 

 : PROMESA 

 as representative of : Title III 

 : 

PUERTO RICO ELECTRIC POWER AUTHORITY, : 

Plaintiff, : 

 

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-5233 (LTS)) (Last Four Digits of Federal Tax ID: 3801) 

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

Case:17-03283-LTS Doc#:22546 Filed:10/06/22 Entered:10/06/22 20:41:32 Desc: Main

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 : 

v. : 

 : 

U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE : 

Defendant. : 

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INFORMATIVE MOTION OF OFFICIAL COMMITTEE OF UNSECURED 

CREDITORS REGARDING (A) SEPTEMBER 29, 2022 SCHEDULING ORDER 

AND (B) STATUS OF DISCUSSIONS WITH OVRSIGHT BOARD REGARDING 

COMMITTEE’S INTERVENTION AS CO-PLAINTIFF 

To the Honorable United States District Judge Laura Taylor Swain: 

The Official Committee of Unsecured Creditors of all Title III Debtors (the 

“Committee”)2

 hereby submits this informative motion (i) in connection with the abovecaptioned adversary proceeding (the “Adversary Proceeding”) and (ii) advising the Court of the 

status of the Committee’s discussions with the Oversight Board regarding consensual 

intervention in the Adversary Proceeding, and respectfully states as follows: 

1. The Oversight Board commenced this Adversary Proceeding on July 1, 2019 

through the filing of its initial complaint challenging the validity and extent of the purported 

liens securing approximately $8.5 billion (including prepetition interest) in non-recourse bonds 

(such bonds the “PREPA Bonds” and the holders of such bonds the “Bondholders”).3 

2. On September 29, 2022, the Court entered the Order (A) Granting in Part and 

Denying in Part Urgent Motion of Financial Oversight and Management Board for Order 

(I) Establishing Schedule to Continue Negotiations During Litigation of Gating Issues Pursuant 

To Litigation Schedule and (II) Granting Related Relief and (B) Staying Certain Motions Filed 

 

2

 The Committee is the official committee of unsecured creditors for all Title III Debtors, other than PBA and 

COFINA. 

3

 See Docket No. 1 in Adv. Pro. No. 19-391-LTS. 

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by PREPA Bondholders (the “Scheduling Order”).4

 Pursuant to that order, the Court, among 

other things, established (i) a September 30, 2022 deadline for the Oversight Board to file an 

amended adversary complaint and (ii) an October 6, 2022 deadline for parties to request 

intervention with respect to summary judgment motion practice in this Adversary Proceeding. 

3. As the Court is well aware, the Committee has been advocating for several years 

that the threshold questions as to (a) the scope of the PREPA bondholders’ security interest and 

(b) the non-recourse nature of the PREPA bonds should be litigated. Now that this litigation is 

finally going forward, the Committee seeks to intervene in this Adversary Proceeding as a coplaintiff. In order to obviate the need for motion practice, the Committee has been in discussions 

with the Oversight Board regarding a stipulation and agreed order that would govern the terms of 

the Committee’s intervention as a co-plaintiff. While these discussions are in an advanced stage 

and the parties have exchanged drafts of such a stipulation, the parties have not yet reached final 

agreement on the term on that stipulation. However, based on the discussions with counsel to the 

Oversight Board, the Committee is hopeful that the stipulation will be finalized in the near 

future. 

4. In light of the foregoing, the Committee believes that it would be wasteful to 

prepare a separate motion to intervene in the Adversary Proceeding; however, because no final 

agreement has been reached prior to the Scheduling Order’s October 6 deadline, the Committee 

files this informative motion advising the Court that (a) it intends to intervene in this Adversary 

Proceeding as a co-plaintiff and (b) the Committee reserves all its rights in the event that no 

 

4

 See Docket No. 22 in Adv. Pro. No. 19-391-LTS. 

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agreement is reached with the Oversight Board regarding the terms of the Committee’s 

intervention in this Adversary Proceeding. 

[Remainder of page intentionally left blank.] 

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WHEREFORE, the Committee respectfully requests that the Court take notice of the 

above. 

Dated: October 6, 2022 

 

/s/ Luc A. Despins .

PAUL HASTINGS LLP 

Luc. A. Despins, Esq. (Pro Hac Vice) 

Nicholas A. Bassett, Esq. (Pro Hac Vice) 

G. Alexander Bongartz, Esq. (Pro Hac Vice) 

200 Park Avenue 

New York, New York 10166 

Telephone: (212) 318-6000 

lucdespins@paulhastings.com 

nicholasbassett@paulhastings.com 

alexbongartz@paulhastings.com 

Counsel to the Official Committee of Unsecured 

Creditors 

- and - 

/s/ Juan J. Casillas .

CASILLAS, SANTIAGO & TORRES LLC 

Juan J. Casillas Ayala, Esq. (USDC - PR 218312) 

Israel Fernández Rodríguez, Esq. (USDC - PR 

225004) 

Juan C. Nieves González, Esq. (USDC - PR 231707) 

Cristina B. Fernández Niggemann, Esq. (USDC - PR 

306008) 

PO Box 195075 

San Juan, PR 00919-5075 

Tel.: (787) 523-3434 

Fax: (787) 523-3433 

jcasillas@cstlawpr.com 

ifernandez@cstlawpr.com 

jnieves@cstlawpr.com 

cfernandez@cstlawpr.com 

Local Counsel to the Official Committee of 

Unsecured Creditors 

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