UNITED STATES DISTRICT COURT 

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)

Re: ECF No. 22668

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO 

RICO,

as representative of

PUERTO RICO ELECTRIC POWER 

AUTHORITY,

Debtor.

PROMESA 

Title III

No. 17 BK 4780-LTS

THE PUERTO RICO FISCAL AGENCY AND FINANCIAL ADVISORY

AUTHORITY’S STATUS REPORT REGARDING THE GOVERNMENT OF PUERTO 

RICO’S RESPONSE TO RECENT ACTIVITIES, INCLUDING

THE PASSING OF HURRICANE FIONA 

To the Honorable United States District Judge Laura Taylor Swain:

1

 The Debtors in these Title III cases, along with each Debtor’s respective Title III case number listed as a bankruptcy 

case number due to software limitations 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) 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), (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case No. 

17-BK-3567 (LTS)) (Last Four Digits of Federal Tax ID: 3808), and (iv) Puerto Rico Sales Tax Financing 

Corporation (“COFINA”) (Bankruptcy Case No. 17-BK-3284 (LTS)) (Last Four Digits of Federal Tax ID: 8474); 

(v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17-4780 (LTS)) (Last Four Digits of 

Federal Tax ID: 3747); and (vi) Puerto Rico Public Buildings Authority (“PBA”) (Bankruptcy Case No. 19-BK5523-LTS) (Last Four Digits of Federal Tax ID: 3801).

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2

The Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), through its 

undersigned counsel, submits this status report on behalf of the Government of the Commonwealth 

of Puerto Rico (the “Government”) in response to the Court’s Order Regarding Procedures For 

Hearing On November 2-3, 2022, Omnibus Hearing [ECF No. 22668], and states as follows:

PRELIMINARY STATEMENT2

Approximately a month and a half after the Hurricane Fiona struck Puerto Rico, the 

Government has continued working with various Commonwealth and federal government 

agencies (including the Federal Emergency Management Agency (“FEMA”) and the Financial 

Oversight and Management Board for Puerto Rico (the “Oversight Board”) on recovery issues. As 

of October 14, 2022, 99% of the Island’s electricity and water service have been restored. Governor

Pedro Pierluisi recently announced that FEMA, with the authorization of President Biden who 

visited Puerto Rico on October 3, 2022, accepted a request to help stabilize Puerto Rico’s electric 

energy system, particularly focused on energy generation, to address the damage caused by 

Hurricane Fiona3. After a full damage evaluation is completed, the federal government will 

identify available measures to help stabilize Puerto Rico’s electric system while the construction 

of permanent modernization projects for the electric system continues. The Government also has 

ongoing meetings with the United States Secretary of Energy, Jennifer Granholm (who recently 

visited Puerto Rico), to fulfill President Biden’s pledge for federal agencies to expedite the 

2 Defined terms not otherwise defined herein shall have the same meaning given to them in The Puerto Rico Fiscal 

Agency And Financial Advisory Authority’s Status Report Regarding The Government Of Puerto Rico’s Response 

To Recent Activities, Including The Passing Of Hurricane Fiona (the “September Report”) [ECF No. 22402].

3 See Fortaleza Website, GOBIERNO Y FEMA TRABAJAN JUNTOS PARA ESTABILIZAR SISTEMA 

ELÉCTRICO DE LA ISLA TRAS DAÑOS OCASIONADOS POR FIONA, (October 19, 2022) 

(https://www.fortaleza.pr.gov/comunicados/gobierno-y-fema-trabajan-juntos-para-estabilizar-sistema-electricode-la-isla-tras-danos-ocasionados-por-fiona).

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reconstruction of the Island’s electric system, and to broaden the resources available to support the 

transformation to a new, cleaner, reliable and resilient electric system.

4

Further, following the entry of the Order And Judgment Confirming Modified Fifth 

Amended Title III Plan Of Adjustment Of The Puerto Rico Highways And Transportation Authority

[Case No. 17-03567, ECF No. 1415] on October 12, 2022, the Government is working to finalize 

matters to allow the HTA effective date to occur and the HTA plan of adjustment to be 

implemented thus reducing over $3 Billion in debt service payments of HTA. The restructuring 

of HTA will pave the way to establish a secure path for it to improve its fiscal situation, while 

facilitating investments in infrastructure for the benefit of Puerto Rico’s citizens.

5

Moreover, to continue ensuring Puerto Rico’s recovery, as detailed below, (i) the Governor 

announced that the Working Capital Advance (“WCA”) program is now available for the Public 

Housing Administration (“PHA”) and the Department of Education (“DOE”), seeking, among 

other things, to expedite the transformation of public-school infrastructure, and (ii) the 

Government also announced that it is engaged with FEMA and the federal government to address 

concerns regarding the inflation of costs of materials and labors, to assure that construction projects 

are uninterrupted.

The Puerto Rico Department of Health (“DOH”) continues to monitor COVID-19 

infections. The positivity rate has decreased and, as a result, DOH has been periodically adjusting

4

See Fortaleza Website, EXPRESIONES AUTORIZADAS DEL GOBERNADOR TRAS REUNIÓN CON 

SECRETARIA DE ENERGÍA FEDERAL, (October 20, 2022) 

(https://www.fortaleza.pr.gov/comunicados/expresiones-autorizadas-del-gobernador-tras-reunion-con-secretariade-energia-federal).

5

See AAFAF Website, EXPRESIONES DEL DIRECTOR EJECUTIVO DE LA AUTORIDAD DE ASESORÍA 

FINANCIERA Y AGENCIA FISCAL (AAFAF), OMAR J. MARRERO DÍAZ, CON RELACIÓN A LA 

APROBACIÓN DEL PLAN DE AJUSTE DE LA AUTORIDAD DE CARRETERAS Y TRANSPORTACIÓN 

(ACT), (October 12, 2022) (https://www.aafaf.pr.gov/wp-content/uploads/Exp-OJM-AAFAF-aprobacion-PADACT.pdf).

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prevention measures. The DOH also remains vigilant following the World Health Organization’s 

(“WHO”)’s declaration, on July 23, 2022, that the multi-country outbreak of monkeypox is a 

public health emergency of international concern (“PHEIC”),

6

and has set up vaccination centers 

to curb its transmission in the Island following the Governor’s declaration of a state of emergency 

in connection with such virus.

7

I. Status of Recovery From Hurricane Fiona

1. As of October 14, 2022, 99% of both the Island’s water and electric services had 

been restored. However, Hurricane Fiona inflicted significant damage to the Puerto Rico Electric 

Power Authority’s power generation plants, which damage remains.8

2. Earlier this month, the Governor announced that in response to Hurricane Fiona, 

(i) the Oversight Board, upon request by the Office of Management and Budget (“OGP” for its 

initials in Spanish), extended the period for the central government to have access to the OGP’s

Emergency Fund, (ii) the Government had utilized $73.9 Million from such fund ($20 Million of 

which was distributed among municipalities, (iii) $12.3 Million was used for distribution of food 

and water, (iv) $10 Million was used for debris removal, (v) $4.9 Million funded equipment and 

heavy machinery, and (vi) $4.5 Million funded electric generators.

3. Furthermore, the Government announced that (i) eight million bottles of water and 

an additional eight million gallons of potable water were provided to citizens, (ii) 55,000 purchases 

6

See WHO Website, (https://www.who.int/news-room/questions-andanswers/item/monkeypox?gclid=CjwKCAjw5P2aBhAlEiwAAdY7dMBHnBuv820_IJQn_GktYOs4X6zJ7xwoYI

38DISFhUIzP_38S89odRoCFBYQAvD_BwE). 

7

 See, El Nuevo Día (September 2, 2022) (https://www.elnuevodia.com/noticias/locales/notas/pedro-pierluisi-declaraun-estado-de-emergencia-por-la-viruela-del-mono/). 

8

See Fortaleza Website, GOBERNADOR PIERLUISI BRINDA ACTUALIZACIÓN DE ESFUERZOS TRAS 

HURACÁN FIONA, (October 14, 2022) (https://www.fortaleza.pr.gov/comunicados/gobernador-pierluisi-brindaactualizacion-de-esfuerzos-tras-huracan-fiona). 

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of nonperishable food were made in 62 municipalities, (iii) 161,000 gallons of diesel fuel was 

distributed to municipalities, hospitals, emergency centers and government entities, (iv) 300 

electric generators had been delivered throughout the Island, and (v) that the Department of Health 

had delivered 200 solar generators in vulnerable zones to citizens with critical conditions, and that, 

as of October 14, 2022, an additional 200 generators would be delivered.

4. Preliminary estimates for damages caused Fiona are approximately $10 billion. 

The Government continues working with FEMA to assure reconstruction projects to address the 

damage caused by Hurricane María and affected by Hurricane Fiona will continue without delay. 

Under FEMA’s Individual Assistance Programs, 503,000 applications have been approved, paying 

out more than $386 Million in assistance, while state agencies, such as the Department of 

Economic Development and Commerce, have provided $15 Million to assist small and medium 

businesses in recovering from Hurricane Fiona. The Government is confident its efforts will pave 

the way for Puerto Rico’s prompt recovery. 

II. Continued Reduction in Positivity Rates for the COVID-19 Virus

5. As detailed in previous reports, the DOH maintains a “dashboard” to provide daily 

updates on COVID-19 related statistics9.

6. Since the September Report, the Government has continued observing a reduction 

in the rate of COVID-19 infections, with a positivity rate of approximately 13.85% as of October 

31, 2022.

10 Based on these sustained reductions in contagion, the DOH issued Administrative 

Order 2022-551 (“OA 2022-551”), through which it eliminated the mandatory use of facemasks

at large-scale events, whether they take place indoors or outdoors.

11

9 https://covid19datos.salud.gov.pr/.

10 COVID-19 In Figures In Puerto Rico, https://covid19datos.salud.gov.pr/ (last visited October 31, 2022). 

11 See DOH Website, OA 2022-551 (http://www.salud.pr.gov/CMS/DOWNLOAD/6665). 

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III. Status of COVID-19 Vaccination Process and Infections

7. The Government continues to promote COVID-19 vaccinations, including first and 

second booster-shots, as well as social distancing and the constant washing of hands, as the best 

way to combat COVID-19’s spread.

8. As noted in previous reports, the DOH adopted the Centers for Disease Control and 

Prevention (“CDC”)’s definition of being “up-to-date with vaccinations,” which distinguishes

between (i) “non-vaccinated,” (ii) “not up-to-date with vaccinations,” and (iii) “up-to-date with 

vaccinations,” indicating that such distinction provides the most accurate available data. 

9. Based on those definitions, as of October 31, 2022, in Puerto Rico, there are (i) 

1,061,529 individuals (or 33.24% of the population) with “up-to-date vaccinations,” (ii) 1,776,300

individuals with “not up-to-date with vaccinations,” and (iii) 355,865 non-vaccinated 

individuals.

12

10. As stated in previous reports, the Government continues promoting several 

programs to reach and encourage eligible individuals to get vaccinated, which efforts have helped 

to achieve favorable results. As of today, Puerto Rico has had 418,352 confirmed cases, 563,586

probable cases, and 5,260 reported deaths.

11. Although the reduction in positivity rates is notable, the Government continues to 

work closely with experts from various sectors to monitor the virus and to adopt or modify any 

necessary measure or restriction that may be required on a timely basis.

12. Further, as mentioned above, the DOH has habilitated several centers for 

vaccination against the transmission of the monkeypox, announcing mass vaccination events for 

November 5, 2022, and November 16, 2022, and, as of October 28, 2022, has administered 5,144 

12 https://covid19datos.salud.gov.pr/.

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doses of vaccines13. As with the COVID-19 virus, the DOH will continue monitoring the spread 

of this the monkeypox and will take the necessary measures that may be appropriate to combat the 

same.

IV. Update on Funding Related to COVID-19 and Disaster Relief Funds

A. Update on Disaster Relief Funds14

13. The Government continues to disburse federal aid pursuant to the Governor’s 

public policy of restoring crucial infrastructure. The various disbursements made, and important 

developments, since the September Report include:

• On September 28, 2022, the Government announced that the Department of 

Transportation and Public Works (“DTOP”) signed collaborative agreements with 

certain municipalities to expedite the response to the emergency caused by the 

passing of Hurricane Fiona. Among other things, these agreements are aimed 

towards ̶with the collaboration of Central Office for Recovery, Reconstruction 

and Resiliency (“COR3”) and FEMA ̶mitigating the impact of the passing of 

hurricanes or any other catastrophic event in highways, that implies some type of 

disaster declaration by the federal government, the DTOP and the municipalities. 

The process entails that each municipality will notify the DTOP of the projects to 

be made, and thereafter, the agency will be responsible for procuring the 

reimbursement of expenses incurred by such municipality.

15

• On October 5, 2022, the COR3 revealed that, within the third semester of the year 

2022, the Government had already reached its goal originally projected to be 

reached by December, of disbursing approximately $1,008 million in advances 

and reimbursements for projects led by municipalities, government dependencies 

and non-profit organizations, through FEMA’s Public Assistance program.

16 The 

progress in these disbursements is due, in great part, to the implementation of the 

Working Capital Advance (the “WCA”) ̶which advances 25% of the total cost of 

13 See, DOH Website, VIGILANCIA, VIRUELA SÍMICA, (last visited on October 31, 2022) 

(https://www.salud.gov.pr/CMS/DOWNLOAD/6546). 

14

 The data and information provided herein has been obtained by AAFAF directly from COR3.

15 See COR3 Press Release, DTOP FIRMA ACUERDOS COLABORATIVOS CON MUNICIPIOS PARA 

AGILIZAR RESPUESTA DE REHABILITACIÓN DE CARRETERAS TRAS EL PASO DEL HURACÁN 

FIONA, (September 28, 2022), https://recovery.pr.gov/es/press-releases/dtop-firma-acuerdos-colaborativos-conmunicipios-para-agilizar-respuesta-de-rehabilitacion-de-carreteras-tras-el-paso-del-huracan-fiona.

16

 See COR3 Press Release, COR3 INCLUYE IMPORTANTES DEPENDENCIAS GUBERNAMENTALES EN EL 

WORKING CAPITAL ADVANCE, (October 5, 2022), https://recovery.pr.gov/es/press-releases/cor3-incluyeimportantes-dependencias-gubernamentales-en-el-wca.

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obligated projects that have not commenced for lack of funds ̶and which program 

is now available for the Public Housing Administration (“PHA”) and the 

Department of Education (“DOE”). For the transformation of public-school 

infrastructure, the DOE can receive approximately $70 Million out of the $278.4 

Million of total costs for 29 projects, and the AVP can receive $81.6 Million to 

initiate approximately 130 permanent projects with an approximate FEMA 

obligated amount of $356.6 Million. Moreover, as of October 5, 2022, PREPA and 

PRASA have received advance disbursements of $149.3 Million and $173 

Million, respectively, and the COR3 projects that, by the end of 2022, the total 

disbursements will be close to $1,300 Million, the highest in COR3 history.

• On October 5, 2022, the secretary of the Puerto Rico Recreation and Sports 

Department announced an investment of $13.5 Million for the reconstruction of 

26 sports installations in eleven (11) Municipalities (namely, Arecibo, Arroyo, 

Cataño, Dorado, Guayama, Loíza, Manatí, San Juan, Santa Isabel, Utuado y Vega 

Baja), all of which installations were affected by the passing of hurricane María.

17

• On October 11, 2022, the Government announced that COR3, with AAFAF, 

commissioned an analysis of the tendencies in the increase in costs of materials, 

equipment and labor in the construction industry of Puerto Rico.

18 Indeed, the 

COR3 announced that the Government’s analysis was presented in August to 

FEMA’s leadership to address cost-inflation concerns, and that the challenges 

faced by COR3 are similar to those faced in the United States mainland, based on 

the fact that, because the budget process for permanent projects was undertaken 

during 2020 in the middle of the COVID19 pandemic but the bidding process is 

being realized in 2022, certain circumstances, such as the war between Ukraine 

and Russia and the global interruption in the chain of supplies, there are 

discrepancies between the projected costs of materials and the actual costs. The 

Government announced that it is engaged in communications with FEMA and the 

federal government to address this matter in conjunction with other related 

petitions to acquire more resources and flexibility to expedite the efficient 

reconstruction of Puerto Rico. 

• On October 11, 2022, the Government also announced the opening of an additional 

Disaster Recuperation Center (“DRC”) in Canóvanas, which, in collaboration with 

such Municipality, the Government and FEMA, will assist survivors of hurricane 

17 See COR3 Press Release, ENCAMINADO EL PROCESO DE RECONSTRUCCIÓN DE 26 INSTALACIONES 

DEPORTIVAS, (October 5, 2022), https://recovery.pr.gov/es/press-releases/encaminada-la-reconstruccion-de-26-

instalaciones-deportivas. 

18 See COR3 Press Release, COR3 PRESENTA ANÁLISIS DE INFLACIÓN DE MATERIALES Y MANO DE 

OBRA EN PROYECTOS DE RECONSTRUCCIÓN, (October 11, 2022), https://recovery.pr.gov/es/pressreleases/cor3-presenta-analisis-de-inflacion-de-materiales-y-mano-de-obra-en-proyectos-de-reconstruccion.

Furthermore, a copy of the official report for this analysis can be found in COR3’s website: 

https://recovery.pr.gov/documents/Construction%20Cost_428%20Analysis_June%202022.pdf. 

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Fiona to request assistance from FEMA.

19 Furthermore, also on October 11, 2022, 

the Government announced that FEMA’s Disaster Survivor Assistance (“DSA”) 

teams have been actively visiting several wards in various municipalities to assist 

affected by the passing of hurricane Fiona to register for disaster assistance.

20

• In furtherance of continuing the Government’s public policy for infrastructure 

reconstruction, on October 19, 2022, the COR3 informed that, as of that date, 195 

applications ̶ from governmental agencies, municipalities and non-profit 

organizations ̶for the FEMA Request for Public Assistance program (“RPA”) for 

damages caused by the passing of hurricane Fiona, of which 147 have already been 

identified as eligible, encouraging all entities with structures that were affected by 

the hurricane to submit their applications on or before October 21, 2022.

21 The 

COR3 also announced that it has been conducting “Applicant Briefings” seminars 

(virtually and in person), aimed towards providing guidance as to the processes to 

follow for projects to be eligible under FEMA guidelines.

• On October 25, 2022, the Government announced an extension of the WCA 

program ̶effective on that same date ̶to governmental dependencies and nonprofit entities, stating, as an example, that the Department of Public Works and 

Transportation, could, through the WCA program, request advances of 

approximately $51.4 Million for obligated projects with costs of $205.6 Million.

22

The Government expects that this extension could represent advances of 

approximately $685 Million to allow government agencies and non-profit 

organizations to commence and expedite the reconstruction of buildings, 

highways, bridges, recreational parks, water installations and other basic services 

for Puerto Rico. 

• On October 27, 2022, the executive director of COR3 encouraged all employees 

of the government, municipalities and directors of non-profit organizations to 

19 See COR3 Press Release, FEMA ABRE CENTRO DE RECUPERACIÓN POR DESASTRE EN CANÓVANAS, 

(October 11, 2022), https://recovery.pr.gov/es/press-releases/fema-abre-centro-de-recuperacion-por-desastre-encanovanas. A list of all available DRCs is located in this same press release, and a DRC database locator can be 

found in FEMA’s website: https://egateway.fema.gov/ESF6/DRCLocator. 

20 See COR3 Press Release, FEMA MOVILIZA EQUIPOS DE ASISTENCIA A SOBREVIVIENTES DEL 

DESASTRE EN TODO PUERTO RICO, (October 11, 2022), https://recovery.pr.gov/es/press-releases/femamoviliza-equipos-de-asistencia-a-sobrevivientes-del-desastre-en-todo-puerto-rico. However, affected residents do 

not need to wait for the visit of a DSA team, and can commence requesting assistance through the Disaster 

Assistance portal: https://www.disasterassistance.gov/es. 

21 See COR3 Press Release, CIENTAS DE ENTIDADES GUBERNAMENTALES, MUNICIPALES Y SIN FINES 

DE LUCROS HAN COMPLETADO LA SOLICITUD DEL PROGRAMA DE ASISTENCIA PÚBLICA, (October

19, 2022), https://recovery.pr.gov/es/press-releases/cientas-de-entidades-han-completado-la-solicitud-delprograma-de-asistencia-publica.

22 See COR3 Press Release, GOBERNADOR PIERLUISI ANUNCIA EXTENSIÓN DEL WORKING CAPITAL 

ADVANCE PARA DEPENDENCIAS GUBERNAMENTALES Y ENTIDADES SIN FINES DE LUCRO, 

(October 25, 2022), https://recovery.pr.gov/es/press-releases/gobernador-pierluisi-anuncia-extension-del-workingcapital-advance-para-dependencias-gubernamentales-y-entidades-sin-fines-de-lucro. 

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complete a Quarterly Progress Report (“QPR”) through the Disaster Recovery 

Solution portal, on or before November 4, 2022, explaining that the QPR’s provide 

crucial data regarding the progress of reconstruction projects for the period of July 

through September.

23 The COR3 further noted that, during past quarters, an 

increase in the development of reconstruction projects had been recorded, stating 

that, during the first quarter of the year 2022, 2,650 reconstruction projects for 

damages caused by hurricane María had been reported, with a FEMA obligated 

amount of approximately $2,100 Million, while, for the period of April through 

June 2022, approximately 5,613 permanent projects were reported to be in 

development, representing an increase of 111.8% in comparison to previous years. 

14. As of October 24, 2022, the United States Congress had appropriated 

$80,303,915,925 for Puerto Rico’s recovery efforts. Of this amount, approximately 

$69,622,383,938 has been committed by federal agencies for distribution, and $26,173,090,136—

around 32.6% of the appropriated amounts—has been disbursed. Of the amounts obligated and 

disbursed, FEMA has committed $43,838,442,051 and disbursed $16,815,202,102 of the total 

amounts detailed above. Furthermore, of the amounts obligated and disbursed, other federal 

agencies that provide financial assistance when major disasters and emergencies occur have 

approved $30,211,760,603 and disbursed $4,470,048,077 of the total amounts detailed above. The 

Government’s use of these funds is detailed on the COR3 website and can be accessed at 

https://recovery.pr/en. 

V. PFC Title VI Transaction

15. On October 25, 2022, AAFAF, on behalf of the Puerto Rico Public Finance 

Corporation (“PFC”), and the Oversight Board launched solicitation of a Qualifying Modification 

for PFC (the “Qualifying Modification”) pursuant to Title VI of PROMESA. On October 28, 2022, 

the Oversight Board, as the Title VI Administrative Supervisor, also commenced a Title VI 

23 See COR3 Press Release, EXHORTAN A FUNCIONARIOS ESTATALES, MUNICIPALES Y 

ORGANIZACIONES SIN FINES DE LUCRO A COMPLETAR EL INFORME DE PROGRESO TRIMESTRAL, 

(October 27, 2022), https://recovery.pr.gov/es/press-releases/exhortan-a-funcionarios-estatales-municipales-yorganizaciones-sin-fines-de-lucro-a-completar-el-informe-de-progreso-trimestral.

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proceeding in this Court by filing an application seeking approval of the Qualifying Modification 

(the “Approval Application”). The deadline to vote on the Qualifying Modification is November 

21, 2022. 

16. The Qualifying Modification involves the restructuring of the following bonds 

issued by PFC: (i) Series 2011A Commonwealth Appropriation Bonds, (ii) Series 2011B 

Commonwealth Appropriation Bonds, and (iii) Series 2012A Commonwealth Appropriation 

Bonds (collectively, the “Participating Bonds”). The Participating Bonds are payable solely from 

payments of principal and interest on certain promissory notes (the “Notes”) issued by certain 

departments, agencies, instrumentalities, and public corporations of the Commonwealth of Puerto 

Rico, which Notes are payable solely from budgetary appropriations (if any) made by the Puerto 

Rico Legislative Assembly. If the requisite votes are received and the Qualifying Modification is 

approved by this Court and implemented, the Qualifying Modification will result in the discharge 

of the Participating Bonds at a significant discount. In particular, the only new economic 

consideration required to be provided by the Commonwealth or PFC to discharge the more than 

$1.5 billion (including principal and unpaid interest) of Participating Bonds is through payment of 

$13.8 million in cash. The remaining consideration, subject to and as provided under the 

Qualifying Modification, will be in the form of bonds issued by the GDB Debt Recovery Authority 

(the “DRA”) in the face amount of up to approximately $47 million.

17. In addition, if consummated, the Qualifying Modification will result in the release 

of all claims against the agencies and public corporations that issued the Notes. This will allow the 

Notes liability that is currently carried on the balance sheets of multiple government agencies and 

public corporations to be eliminated. Consummation of the Qualifying Modification thus 

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represents a significant step in restructuring the Commonwealth’s legacy debt and paving the way 

for Puerto Rico to regain access to the capital markets. 

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Dated: November 1, 2022

San Juan, Puerto Rico

Respectfully submitted,

O’MELVENY & MYERS LLP

/s/ Peter Friedman

John J. Rapisardi

Maria J. DiConza

Matthew P. Kremer

7 Times Square 

New York, NY 10036 

Telephone: (212) 326-2000 

Facsimile: (212) 326-2061 

Email: jrapisardi@omm.com 

mdiconza@omm.com

mkremer@omm.com

-andPeter Friedman

1625 Eye Street, NW 

Washington, DC 20006 

Telephone: (202) 383-5300 

Facsimile: (202) 383-5414 

Email: pfriedman@omm.com 

Attorneys for the Puerto Rico Fiscal 

Agency and Financial Advisory 

Authority 

MARINI PIETRANTONI MUÑIZ LLC

/s/ Luis C. Marini-Biaggi

Luis C. Marini-Biaggi

USDC No. 222301 

Carolina Velaz-Rivero

USDC No. 300913

250 Ponce de León Ave., Suite 900

San Juan, Puerto Rico 00918

Tel: (787) 705-2171

Fax: (787) 936-7494

lmarini@mpmlawpr.com

cvelaz@mpmlawpr.com

Attorneys for the Puerto Rico Fiscal Agency 

and Financial Advisory Authority

Case:17-03283-LTS Doc#:22773 Filed:11/01/22 Entered:11/01/22 16:12:20 Desc: Main

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