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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. 22578

AAFAF’S STATEMENT REGARDING THE MOTION OF BONISTAS DEL PATIO 

FOR PAYMENT OF CERTAIN PROFESSIONAL FEES AND EXPENSES BY THE 

COMMONWEALTH

To the Honorable United States District Judge Laura Taylor Swain: 

With regard to the Motion of Bonistas del Patio for Payment of Certain Professional Fees 

and Expenses by the Commonwealth (“Bonistas’ Motion”) [ECF No. 22578], AAFAF2states as 

follows:

1. On October 11, 2022, Bonistas filed the Bonistas’ Motion requesting payment of

certain fees and expenses by the Commonwealth.

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), (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-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

2 Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Bonistas’ Motion.

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2. AAFAF participated in the December 14, 2022 hearing regarding the Bonistas’ 

Motion, and has reviewed the related submissions to the Court by the Oversight Board, the Official 

Committee of Unsecured Creditors, and Bonistas.

3. AAFAF believes Bonistas played an important and unique role in COFINA’s Title 

III case. Bonistas represented retail, on-Island bondholders’ interests, which were not otherwise 

represented in that case. As AAFAF observed in a prior filing:

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because of the complexity and 

importance of the COFINA negotiations, a need existed for the interests of local bondholders to 

be adequately represented in the negotiations.4 This subset of bondholders live in Puerto Rico, 

participate daily in its economy, and are uniquely invested in Puerto Rico’s economic recovery.

4. AAFAF also believes that the Bonistas’ support for the COFINA Plan, its 

participation as a party to the COFINA PSA, and its efforts to educate on-Island bondholders 

regarding the COFINA Plan, greatly benefited the joint effort undertaken by the Oversight Board, 

AAFAF, and creditor parties to confirm the COFINA Plan. 

5. Obtaining overwhelming support from on-Island bondholders was important not 

only for legal confirmation of the COFINA Plan, but also helped ensure that the first confirmed 

Title III plan had buy-in from affected on-Island stakeholders. And, of course, as the Court knows, 

confirmation of the COFINA Plan greatly benefitted the Commonwealth by resolving a major 

dispute and providing greater revenue to the Commonwealth. This, in turn, provided the 

Commonwealth with more resources to satisfy creditors and confirm its own successful plan of 

adjustment. 

3 See Response of the Puerto Rico Fiscal Agency and Financial Advisory Authority to the Official Committee of 

Unsecured Creditors’ Urgent Response to Informative Motion [Docket No. 584] [ECF No. 5117], ¶ 4.

4 Moreover, as AAFAF stipulated on February 11, 2019 [ECF No. 5097], AAFAF believes the Bonistas Expenses are 

“expenses” within the meaning of Section 15.2 of the COFINA Plan and are payable by the Commonwealth.

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6. Fundamentally, AAFAF believes there is a factual predicate for the Commonwealth 

paying the Bonistas’ Expenses. Given the many benefits the settlement of the CommonwealthCOFINA Dispute provided to the Commonwealth, and the critical role Bonistas played in the 

development, negotiation, confirmation and consummation of the plan and the compromise and 

settlement of that dispute, AAFAF does not object to payment. 

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Dated: January 31, 2023

San Juan, Puerto Rico

Respectfully submitted,

O’MELVENY & MYERS LLP

/s/ Peter Friedman

John J. Rapisardi

Maria J. DiConza

Matthew P. Kremer 

(Admitted Pro Hac Vice)

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

(Admitted Pro Hac Vice)

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

Attorneys for the Puerto Rico Fiscal Agency 

and Financial Advisory Authority 

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