230301 ORD RE RIVERA GRAU STIP VERSION MARCH 1, 2023 1

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)

STIPULATION AND AGREED ORDER REGARDING MOTION FOR RELIEF FROM 

STAY FILED BY ISMAEL RIVERA GRAU, LOURDES MORALES REYES AND 

THE LEGAL CONJUGAL PARTNERSHIP CONSTITUTED BETWEEN THEM

The Commonwealth of Puerto Rico (the “Commonwealth” or the “Debtor”), by and 

through the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), 

as the sole Title III representative of the Commonwealth pursuant to section 315(b) of the Puerto 

Rico Oversight, Management, and Economic Stability Act (“PROMESA”),2 on the one hand, and 

Ismael Rivera Grau, Lourdes Morales Reyes and the legal conjugal partnership constituted 

between them (collectively, “Movants”), on the other hand, hereby stipulate and agree as follows:

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”) 

(Bankruptcy Case No. 17 BK 4780-LTS) (Last Four Digits of Federal Tax ID: 3747); and (vi) Puerto Rico Public 

Buildings Authority (“PBA”, and together with the Commonwealth, COFINA, HTA, ERS, and PREPA, the 

“Debtors”) (Bankruptcy Case No. 19-BK-5532-LTS) (Last Four Digits of Federal Tax ID: 3801) (Title III case 

numbers are listed as Bankruptcy Case numbers due to software limitations).

2

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

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230301 ORD RE RIVERA GRAU STIP VERSION MARCH 1, 2023 2

RECITALS

A. On May 3, 2017, the Commonwealth, by and through the Oversight Board, as the 

Commonwealth’s representative pursuant to PROMESA section 315(b), filed a voluntary petition 

with the United States District Court for the District of Puerto Rico (the “Title III Court”) for relief 

pursuant to PROMESA Section 304(a), commencing a case under Title III thereof (the 

“Commonwealth Title III Case”).

B. On May 29, 2018, Movants filed Proof of Claim Nos. 33011 and 34516 in the 

Commonwealth Title III Case asserting a claim in connection with the litigation captioned Rivera 

Grau, Ismael v. Commonwealth of Puerto Rico, Case No. K DP2016-0913 (the “Prepetition 

Action”), pending before the Puerto Rico Court of First Instance of San Juan (the “Prepetition 

Court”).

C. On January 18, 2022, the Title III Court entered the Order and Judgment 

Confirming Modified Eighth Amended Title III Joint Plan of Adjustment of the Commonwealth of 

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

Rico, and the Puerto Rico Public Buildings Authority [ECF No. 19813] (the “Confirmation 

Order”), confirming the Modified Eighth Amended Title III Joint Plan of Adjustment of the 

Commonwealth of Puerto Rico, et al. [ECF No. 19784] (the “Commonwealth Plan”).

D. Section 92.3 of the Commonwealth Plan and decretal paragraph 59 of the 

Confirmation Order provide for, among other things, an injunction from and after the effective 

date of the Commonwealth Plan on the prosecution of claims discharged pursuant to the 

Commonwealth Plan (the “Discharge Injunction”).

E. On March 15, 2022, the effective date of the Commonwealth Plan occurred, and 

the Commonwealth Plan was substantially consummated. [ECF No. 20349].

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230301 ORD RE RIVERA GRAU STIP VERSION MARCH 1, 2023 3

F. On May 12, 2022, Movants filed their Motion for Relief from Automatic Stay [ECF 

No. 20763] (the “Lift Stay Motion”) requesting that the Court “issue a modification of the 

automatic stay” in order to continue the pending litigation in the Prepetition Action. See Motion 

at 11.

G. The Commonwealth and Movants met and conferred and have resolved the Lift 

Stay Motion as set forth herein.

NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by and among 

the Commonwealth and Movants, through their respective counsel as follows:

AGREEMENT

1. This Stipulation shall become effective upon entry of an order of the Title III Court 

approving the terms and provisions hereof.

2. The Lift Stay Motion is hereby withdrawn, with prejudice.

3. The Discharge Injunction is hereby modified solely to the limited extent necessary 

to allow the Prepetition Action to be reopened and to proceed to final judgment on motions for 

summary judgment before the Prepetition Court (including the completion of any discovery in 

connection therewith); provided, however, that, except as specifically set forth herein, all 

provisions of the Commonwealth Plan and Confirmation Order shall otherwise remain in full force 

and effect.

4. The Commonwealth and the Movants hereby represent and warrant that the 

respective party is properly and fully empowered to enter into and execute this Stipulation, that 

they know of no contractual commitment or legal limitation of, impediment to, or prohibition 

against their entry into this Stipulation, and that the Stipulation is legal, valid, and binding upon 

the respective party.

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230301 ORD RE RIVERA GRAU STIP VERSION MARCH 1, 2023 4

5. Nothing contained in this Stipulation shall operate as a waiver or modification of 

the Discharge Injunction so as to permit the prosecution against the Commonwealth or any of the 

other Title III debtors of any claim or claims by anyone other than Movants as provided for herein 

and the Commonwealth reserves all rights, defenses, and protections with respect to any and all 

matters pending or that may arise in the Commonwealth Title III Case, including, without 

limitation, with respect to the Commonwealth Plan, the Confirmation Order, and the Prepetition 

Action. 

6. Neither this Stipulation nor any statement made, action, or position taken, or 

document prepared or executed in connection with the negotiation, execution, or implementation 

of this Stipulation shall be deemed to be, or construed as, (a) an admission by any party of any 

liability, wrongdoing, act, or matter or that any claim or defense has or lacks merit; (b) a waiver 

of the Commonwealth’s right to dispute, contest, setoff, or recoup any claim, including any claims 

asserted by Movants in the Prepetition Action, or assert any related rights, claims or defenses and 

all such rights are reserved; or (c) a waiver of Movants’ or the Commonwealth’s rights to determine 

and/or contest the applicability of the Discharge Injunction to any judgment that may be issued in 

the Prepetition Action pursuant to section 944 of title 11 of the United States Code, as made 

applicable to these proceedings by virtue of PROMESA section 301(a).

7. Nothing in this Stipulation shall be deemed or construed as (a) creating or 

conferring any right upon any persons or entities (other than Movants as expressly provided in this 

Stipulation), (b) evidence of any willingness or obligation on the Commonwealth’s part to consent 

to any other or future modifications of or relief from the Discharge Injunction with respect to any 

persons or entities, or (c) altering or otherwise modifying the terms of the Commonwealth Plan or 

Confirmation Order. 

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230301 ORD RE RIVERA GRAU STIP VERSION MARCH 1, 2023 5

8. This Stipulation contains the entire agreement by and between the parties with 

respect to the subject matter hereof, and all prior understandings or agreements, if any, are merged 

into this Stipulation.

9. This Stipulation shall be construed and interpreted in accordance with the laws of 

Puerto Rico. For purposes of construing this Stipulation, neither of the Parties shall be deemed to 

have been the drafter of the Stipulation.

10. This Stipulation shall be binding on the parties’ successors and assigns.

11. Electronic copies of signatures on this Stipulation are acceptable, and an electronic 

copy of a signature on this Stipulation is deemed an original. This Stipulation may be executed in 

counterparts, each of which is deemed an original, but when taken together constitute one and the 

same document.

12. This Stipulation may not be modified other than by a signed writing executed by 

the parties hereto.

13. The Title III Court shall retain jurisdiction to hear and determine all matters or 

disputes arising from or relating to this Stipulation.

[Remainder of Page Intentionally Left Blank]

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230301 ORD RE RIVERA GRAU STIP VERSION MARCH 1, 2023 6

STIPULATED AND AGREED TO BY:

PROSKAUER ROSE LLP

/s/ Brian S. Rosen

Martin J. Bienenstock (pro hac vice) 

Brian S. Rosen (pro hac vice) 

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

/s/ Hermann D. Bauer

Hermann D. Bauer

USDC No. 215205

O’NEILL & BORGES LLC

250 Muñoz Rivera Ave., Suite 800

San Juan, PR 00918-1813

Tel: (787) 764-8181

Fax: (787) 753-8944

Co- Attorneys for the Financial Oversight 

and Management Board as representative for 

the Commonwealth of Puerto Rico

/s/ Osvaldo Toledo Martínez

Osvaldo Toledo Martínez, Esq., 

USDC No. 127905

P.O. Box 190938

San Juan, PR 00919-0938

Tel: (787) 756-6395

Fax: (787) 767-7965

E-mail: toledo.bankruptcy@gmail.com

Counsel for Movants Ismael Rivera Grau, 

Lourdes Morales Reyes and the Conjugal 

Partnership constituted between them

SO ORDERED. 

Dated: March 1, 2023

/s/ Laura Taylor Swain

LAURA TAYLOR SWAIN 

United States District Judge

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