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F29UNITED 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)

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

PUERTO RICO ELECTRIC POWER

AUTHORITY,

Debtors.

PROMESA

Title III

No. 17 BK 4780-LTS

MEDIATION TEAM’S THIRD NOTICE AND REPORT

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 and the last 

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

Rico (“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”) (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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PLEASE TAKE NOTICE that, on April 8, 2022, the Court entered an order (the 

“Appointment Order”)2 appointing a Mediation Team comprising the Honorable Shelley C. 

Chapman as lead mediator, the Honorable Robert D. Drain, and the Honorable Brendan L. 

Shannon (collectively, the “Mediation Team”) to facilitate confidential negotiations among the 

Mediation Parties (and any other Mediation Party added in the Mediation Team’s discretion) 

regarding the Mediation Topics (the “Mediation”). On the same date, the Court entered its 

Order Establishing the Terms and Conditions of Mediation (the “Terms and Conditions 

Order”).

PLEASE TAKE FURTHER NOTICE that the termination date of the Mediation (the 

“Termination Date”) has been extended by the Court multiple times. Pursuant to the Court’s 

Amendments to Order Establishing the Terms and Conditions of Mediation (the “Amended 

Terms and Conditions Order”),3 the Court established a revised Termination Date of December 

31, 2022, and further stated that “the Mediation Team may extend the Termination Date based 

on its assessment of the material progress of the Mediation but in no event shall extend the 

Termination Date beyond January 31, 2023, at 11:59 p.m. (Atlantic Standard Time), without 

this Court’s approval after notice of such proposed extension to parties in interest.”4

 The 

Amended Terms and Conditions Order also authorized the Mediation Team “to make periodic 

written status reports in its discretion.”5

 The Amended Terms and Conditions Order further 

provided that the Appointment Order and the Terms and Conditions Order (except as modified 

by the Amended Terms and Conditions Order) remain in full force and effect.

 2 Capitalized terms not otherwise defined herein have the meaning ascribed to them in the Appointment 

Order.

3 Case No. 17-3283, Docket No. 22409; Case No. 17-4780, Docket No. 3011. 4 Amended Terms and Conditions Order, ¶ 3. 5 Amended Terms and Conditions Order, ¶ 5.

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PLEASE TAKE FURTHER NOTICE that on December 28, 2022, the Mediation Team 

filed the Mediation Team’s Notice of Extension of Mediation6 extending the Termination Date 

to January 31, 2023 at 11:59 p.m. (Atlantic Standard Time). 

PLEASE TAKE FURTHER NOTICE that, on December 30, 2022, the Court entered its 

Notice and Order Regarding Mediation Team stating that, due to the retirement of the 

Honorable Robert D. Drain from judicial service on December 31, 2022, “effective December 

31, 2022, and until further notice (including, without limitation, notice of reappointment of 

Judge Drain to the Mediation Team in a private capacity), the Mediation Team will consist of 

Hon. Shelley C. Chapman (ret.) and Hon. Brendan Linehan Shannon.”7

 

STATEMENT OF MEDIATION TEAM

1. The Mediation Team respectfully submits this Third Notice and Report as a 

status report in accordance with paragraph 5 of the Amended Terms and Conditions Order.

2. While there are no active negotiations involving the Mediation Team taking 

place at this time, the Mediation Team believes it is in the best interests of all stakeholders for 

the Mediation Team to remain available to assist the Mediation Parties. The Mediation Team 

expects that negotiations will resume in the coming weeks and may well continue for some time 

thereafter. Accordingly, the Mediation Team requests that this Court extend the Termination 

Date by three months, to and including April 28, 2023.

 6 Case No. 17-3283, Docket No. 23167; Case No. 17-4780, Docket No. 3135. 7 Case No. 17-3283, Docket No. 23187; Case No. 17-4780, Docket No. 3137. Hereinafter, the term 

“Mediation Team” shall refer to the Hon. Shelley C. Chapman (ret.) and the Hon. Brendan Linehan Shannon.

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3. The Mediation Team is of course available to answer any questions the Court 

may have. 

Dated: January 23, 2023 /s/ Shelley C. Chapman

SHELLEY C. CHAPMAN

Willkie Farr & Gallagher LLP

/s/ Brendan L. Shannon

BRENDAN L. SHANNON

United States Bankruptcy Judge

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