UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF PUERTO RICO 

-------------------------------------------------------------x 

In re: 

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO, 

 as representative of 

THE COMMONWEALTH OF PUERTO RICO, et al.

 Debtors.1

-------------------------------------------------------------x 

PROMESA 

Title III 

No. 17 BK 3283-LTS 

(Jointly Administered) 

CERTIFICATE OF SERVICE 

I, Christian Rivera, declare under penalty of perjury that I am employed by Kroll 

Restructuring Administration LLC (“Kroll”)2, the solicitation, notice, and claims agent for the 

Debtors in the above-captioned cases under Title III of the Puerto Rico Oversight, Management, 

and Economic Stability Act (PROMESA).

On September 30, 2022, at my direction and under my supervision, employees of Kroll 

caused the following documents to be served via first class mail on the ADR Notice Parties 

Service List attached hereto as Exhibit A:

 Alternative Dispute Resolution Notice, customized to include the name and address of 

the party, claim number, date of filing, and claim amount, a blank copy of which is 

attached hereto as Exhibit B

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); and (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). 

2 Effective March 29, 2022, Prime Clerk LLC change its name to Kroll Restructuring Administration LLC.

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2 SRF 64417 

 Alternative Dispute Resolution Procedures, a copy of which is attached hereto as 

Exhibit C 

Dated: October 10, 2022 

/s/ Christian Rivera 

Christian Rivera 

State of New York 

County of New York 

Subscribed and sworn (or affirmed) to me on October 10, 2022, by Christian Rivera, proved to 

me on the bases of satisfactory evidence to be the person who executed this affidavit. 

/s/ OLEG BITMAN 

Notary Public, State of New York 

No. 01BI6339574 

Qualified in Queens County 

Commission Expires April 4, 2024 

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Exhibit A 

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Exhibit A

ADR Notice Parties Service List

Served via first class mail

AddressID NAME ADDRESS 1 ADDRESS 2 ADDRE

2741562 CAMACHO FELICIANO, ABDIER S & FELICIANO OCASIO, MAIDELYN C/O LCDO. JOSE A. RODRIGUEZ JIMENEZ PLAZA CAROLINA STATION 2840345 CONJUGAL PARTNERSHIP OF LUIS COSTAS ELENA AND HAZELL RUSSELL LUIS P. COSTAS ELENA, ESQ. URB. SANTA MARIA 34 CALLE ORQUIDIA 2840337 Costas Elena, Luis P Urb Santa Maria 34 Calle Orquidia 2998412 Figueroa Colon, Ricardo P.O. Box 194134 2745040 GUTIERREZ ARROYO, JEAN CARLOS EDNA M ARROYO RIOS, VICTOR M GUTIERREZ C/O LCDO JORGE M IZQUIERDO 239 ART HOST CAP CTR TO3086195 Luis Cornier Figueroa/Liz Mary Velez Ricent PO Box 184 3352680 RIVERA MALDONADO, WANDA LCDO. CARLOS ALBERTO RUIZ, CSP CARLOS ALBERTO RUIZ RODRIGUEZ, ATTORNEY PO BOX 1298 3083456 RIVERA MALDONADO, WANDA URB. VILLA SERENA CALLE JAZMIN N-10 2745850 Russell, Hazel Luis P. Costas Elena, Esq Urb. Santa Maria 34 Calle Orquidia 

In re: The Commonwealth of Puerto Rico, et al.

Case No. 17‐03283 (LTS) Page 1 of 1

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Exhibit B 

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Document Page 5 of 33
10830/33260-002 CURRENT/132091460v1 07/08/2022 8:48 AM 

La carta de oferta de conciliación y el acuerdo que se adjuntan se relacionan con la evidencia de

reclamo que usted presentó contra la Autoridad de Energfa Electrica de Puerto Rico.  Si usted

acepta la oferta de la Autoridad de Energía Eléctrica de Puerto Rico, firme la carta de oferta y el

acuerdo y devuelva ambos documentos a la dirección que se indica debajo hasta el 25 de octubre

de 2022 inclusive.  Si usted rechaza la oferta de la Autoridad de Energía Eléctrica de Puerto Rico

o desea realizar una contraoferta, le pedimos que complete y devuelva la carta de oferta.

Paul Possinger, Esq. and Ehud Barak, Esq.

Proskauer Rose LLP

Eleven Times Square

New York, NY 10036

The enclosed settlement offer letter and stipulation concern the proof of claim you filed against

the Puerto Rico Electric Power Authority.    If you accept the Puerto Rico Electric Power

Authority's offer, please sign the offer letter and stipulation and return both documents to the

address below on or before October 25, 2022.    If you reject Puerto Rico Electric Power

Authority's offer or wish to make a counteroffer, please complete and return the offer letter.

Paul Possinger, Esq. and Ehud Barak, Esq.

Proskauer Rose LLP

Eleven Times Square

New York, NY 10036

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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) 

ALTERNATIVE DISPUTE RESOLUTION NOTICE 

Service Date: Friday, September 30, 2022 

Designated Claimant(s): 

Address: 

Designated Claim Number(s): 

Amount(s) Stated in Proof(s) of Claim: 

RESPONSE DEADLINE: Tuesday, October 25, 2022 

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-BK3567-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-5523-LTS) (Last 

Four Digits of Federal Tax ID: 3801) (Title III case numbers are listed as Bankruptcy Case numbers 

due to software limitations). 

This Notice only applies to the Designated Claim Number listed above. You should 

read the Notice carefully and discuss it with your attorney. If you do not have an 

attorney, you may wish to consult one. 

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2 

Why am I receiving this notice? You have filed the claim(s) referenced above 

(which is referred to in this Notice as the “Designated Claim(s)”) in the Puerto Rico Electric 

Power Authority’s Title III case. The Puerto Rico Electric Power Authority (“PREPA” or 

the “Debtor”) believes that the Designated Claim(s) is invalid or overstated in whole or in 

part, and is prepared to offer to agree with you to a lower stated claim amount (in other 

words, to “settle” the liquidated amount of your Designated Claim(s)) instead of starting 

proceedings asking the Court to reduce or eliminate your claim. This Alternative Dispute 

Resolution Notice includes the Debtor’s settlement offer to you in Section I below. 

Overview of the ADR Process. PREPA submitted the Designated Claim in PREPA’s 

Title III case to alternative dispute resolution in the Twenty-Fourth Notice of Transfer of Claims 

to Alternative Dispute Resolution on August 1, 2022 [ECF No. 21685], pursuant to the 

procedures (the “ADR Procedures”) established by the Order (A) Authorizing Alternative 

Dispute Resolution Procedures, (B) Approving Additional Form of Notice, and (C) Granting 

Related Relief, entered by the United States District Court for the District of Puerto Rico (the 

“Title III Court”) on April 1, 2020 [ECF No. 12576-1]. A copy of the ADR Procedures, which 

describe all of the methods that may be used to liquidate your Designated Claim(s), is enclosed 

for your reference. Please review the ADR Procedures carefully. The ADR Procedures are 

also available online at https://cases.ra.kroll.com/puertorico. 

A Settlement Offer is included below. You must respond to the Settlement Offer by 

either accepting, rejecting, or providing a counteroffer. Pursuant to the ADR Procedures, if you 

and PREPA do not reach an agreement, your claim will be sent to evaluative mediation, 

where further settlement efforts will be assisted by a Mediator. See Section 3 of the ADR 

Procedures. If those efforts fail, you may agree to proceed with your claim either through 

binding arbitration, or, if you qualify, litigation in the Commonwealth courts (as described 

below). See Sections 5 and 6 of the ADR Procedures. If you do not choose either of those 

options, or if all parties do not agree to the option selected, your claim will be resolved in the 

Title III Court under the procedures described in Section 8 of the ADR Procedures. You will 

receive additional information regarding resolution of your claim through binding arbitration, 

litigation in the Commonwealth courts, or resolution before the Title III Court at a later date. 

SETTLEMENT OFFER. PREPA has reviewed your Designated Claim(s) and, 

pursuant to the ADR Procedures, offers the amount(s) set forth in Section I below as a general 

unsecured nonpriority claim in full and final settlement of the liquidated amount of your 

Designated Claim(s) (the “Settlement Offer”). Please note that the amount of the Settlement 

Offer and any amount you may agree to may NOT be the amount you will actually receive 

pursuant to a confirmed plan of adjustment. The treatment of your claim will be 

determined by the plan of adjustment. It is possible that the amount you will be paid under 

the plan on account of your claim may be less than, and may only be a fraction of, the 

liquidated amount of your claim. 

If you have any questions, please contact Kroll Restructuring Associates, LLC at 

(844) 822-9231 (toll free for U.S. and Puerto Rico) or (646) 486-7944 (for

international callers), available 10:00 a.m. to 7:00 p.m. (Atlantic Standard Time) 

(Spanish available). 

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3 

You Must Respond to This Notice. You must return this ADR Notice to Proskauer 

Rose LLP with a Permitted Response (as defined below) to the Settlement Offer by no later 

than the Response Deadline listed above. 

In addition, if you are rejecting the Settlement Offer or making a counteroffer, to the 

extent that your most recent proof(s) of claim does not (a) state the correct amount of your 

Designated Claim(s); (b) expressly identify each and every cause of action and legal theory on 

which you base your Designated Claim(s); (c) include current, correct and complete contact 

information of your counsel or other representative; or (d) provide all documents on which you 

rely in support of your Designated Claim(s), you must provide all such information and 

documentation with your Permitted Response to this Notice. 

If you do not return this ADR Notice with the requested information and a Permitted 

Response to the Settlement Offer to Proskauer Rose, so that it is received by the deadline to 

respond, you will be deemed to have rejected the Settlement Offer and the liquidation of your 

Designated Claim(s) will advance to the evaluative mediation phase of the ADR Procedures, as 

explained in Section 2(c) of the ADR Procedures. 

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4 

Settlement Offer. PREPA offers you an allowed general unsecured nonpriority claim in the 

amount of against PREPA in full satisfaction of your Designated Claim No.

to be satisfied in accordance with any plan of adjustment of debts confirmed and implemented in 

PREPA’s Title III case.

The only permitted responses (“Permitted Responses”) to the Settlement Offer are: 

(a) acceptance of the Settlement Offer,

(b) rejection of the Settlement Offer, or

(c) rejection of the Settlement Offer coupled with a counteroffer (a “Counteroffer”).

Information regarding Counteroffers is available in Section 2 of the ADR Procedures. 

Please select your Permitted Response in the box below. 

YOU MUST RESPOND TO THE SETTLEMENT OFFER AND RESPOND TO THE 

OTHER APPLICABLE ITEMS IN THE REMAINDER OF THE FORM 

RESPONSE TO SETTLEMENT OFFER 

I/we agree to and accept the terms of the Settlement Offer. 

(If you indicate that you accept the settlement offer, skip Section II, sign the form at 

the bottom, and return it to Proskauer Rose LLP. If you are not accepting the 

Settlement Offer, read each of the following items carefully and respond as 

applicable.) 

OR 

 I/we reject the Settlement Offer. 

OR 

 I/we reject the Settlement Offer. However, I/we will accept an allowed general 

unsecured claim against PREPA in the amount of $ _______ in full satisfaction of 

the Designated Claim(s), to be satisfied in accordance with any plan of adjustment of 

debts confirmed and implemented in the PREPA’s Title III case. 

Section 2 of the ADR Procedures sets forth the restrictions on counteroffers. Your 

counteroffer may not include unknown, unliquidated or similar amounts and may not exceed 

the amount or improve the priority set forth in your most recent timely filed or amended 

proof of claim. You may not amend your proof of claim solely for the purpose of proposing a 

counteroffer of a higher amount or a better priority. If you return this form with a 

counteroffer that does not comply with the terms of the ADR Procedures, you will be 

deemed to have rejected the Settlement Offer, and the liquidation of your Designated 

Claim(s) will advance to evaluative mediation as set forth in Section 3 of the ADR 

Procedures. 

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5 

RETURN YOUR COMPLETED NOTICE AND ANY SUPPLEMENTAL INFORMATION 

IN A COUNTEROFFER TO THE FOLLOWING ADDRESS BY TUESDAY, OCTOBER 25, 

2022 

Paul Possinger, Esq. and Ehud Barak, Esq. 

Proskauer Rose LLP

Eleven Times Square 

New York, NY 10036 

[Signature of the Designated 

Claimant’s Authorized Representative] 

By: 

[Printed Name] 

[Signature of the Designated 

Claimant’s Authorized Representative] 

By: 

[Printed Name]

In addition, if you are rejecting the Settlement Offer or making a counteroffer, to the extent 

that your most recent proof(s) of claim does not (a) state the correct amount of your 

Designated Claim(s); (b) expressly identify each and every cause of action and legal theory 

on which you base your Designated Claim(s); (c) include current, correct and complete 

contact information of your counsel or other representative; or (d) provide all documents 

on which you rely in support of your Designated Claim(s), you MUST send all such 

information and documentation with your Permitted Response to Proskauer Rose. 

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6 

TRIBUNAL DE DISTRITO DE LOS ESTADOS UNIDOS 

PARA EL DISTRITO DE PUERTO RICO 

En el caso: 

LA JUNTA DE SUPERVISIÓN Y 

ADMINISTRACIÓN FINANCIERA PARA PUERTO 

RICO, 

como representante del 

ESTADO LIBRE ASOCIADO DE PUERTO RICO, y 

otros, 

Deudores.2

PROMESA 

Título III 

No. 17-BK-3283-LTS 

(Administrados en forma 

conjunta) 

AVISO DE RESOLUCIÓN ALTERNATIVA DE CONFLICTOS 

Fecha de Servicio: viernes, 30 de septiembre de 2022 

Reclamante(s) designado(s): 

Dirección: 

Número(s) de reclamo(s) designado(s): 

Cantidad(es) indicada(s) en la(s) prueba(s) de reclamo: 

FECHA LÍMITE DE RESPUESTA: martes, 25 de octubre de 2022 

2 Los Deudores en estos casos iniciados al amparo del Título III, junto con el número de caso 

respectivo de cada Deudor y los últimos cuatro (4) dígitos del número de identificación contributiva 

federal de cada Deudor, según corresponda, son (i) El Estado Libre Asociado de Puerto Rico (el “ 

Estado Libre Asociado”) (Caso de Quiebras Núm. 17-BK-3283-LTS) (últimos cuatro dígitos del 

número de identificación contributiva federal: 3481); (ii) la Corporación del Fondo de Interés 

Apremiante de Puerto Rico (“COFINA”) (Caso de Quiebras Núm. 17-BK-3284- LTS) (últimos 

cuatro dígitos del número de identificación contributiva federal: 8474); (iii) la Autoridad de 

Carreteras y Transportación de Puerto Rico (“HTA”) (Caso de Quiebra Núm. 17-BK-3567-LTS) 

(últimos cuatro dígitos del número de identificación contributiva federal: 3808); (iv) Sistema de 

Retiro de los Empleados del Gobierno del Estado Libre Asociado de Puerto Rico (“ERS”) (Caso de 

Quiebra Núm. 17-BK-3566-LTS) (últimos cuatro dígitos del número de identificación contributiva 

federal: 9686); y (v) Autoridad de Energía Eléctrica de Puerto Rico (“PREPA”) (Caso de Quiebra 

Núm. 17-BK-4780-LTS) (últimos cuatro dígitos del número de identificación contributiva federal: 

3747); y (vi) la Autoridad de Edificios Públicos (“PBA”, y junto con el Estado Libre Asociado, 

COFINA, HTA, ERS, y PREPA, los “Deudores”) (Caso de Quiebras Núm. 19-BK-5523-LTS) (los 

casos al amparo del Título III figuran como números el Caso de Quiebra debido a limitaciones de 

programación).

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7 

¿Por qué estoy recibiendo este Aviso? Usted ha presentado su(s) reclamo(s) como se 

menciona arriba (el/los “Reclamo(s) Designado(s)”) en el caso del Título III de la Autoridad de 

Energía Eléctrica de Puerto Rico. La Autoridad de Energía Eléctrica de Puerto Rico (la “AEE” 

o el “Deudor”) entiende que su(s) Reclamo(s) Designado(s) es/son nulo(s) o está(n)

sobreestimado(s) total o parcialmente, y está preparado para ofrecerse a llegar un acuerdo con

usted para una cantidad menor (en otras palabras, para “transar” el monto de liquidación de su(s)

Reclamo(s) Designado(s) en lugar de iniciar procedimientos solicitándole al Tribunal que

reduzca o elimine su reclamo. Esta Resolución Alternativa de Conflicto incluye la oferta de

transacción que le extiende a usted en la Sección I a continuación.

Descripción General del Procedimiento de RAC. La AEE sometieron el/los 

Reclamo(s) Designado(s) en el caso de Titulo III de la AEE a Resolución Alternativa de 

Conflictos en el Vigésimo Cuarto Aviso de Transferencia de Reclamos a Resolución Alternativa 

de Conflicto el 1 de agosto de 2022 [ECF Núm. 21685], de conformidad con los procedimientos 

(el “Procedimientos de RAC”) establecidos por la Orden para (A) Autorizar Procedimientos 

Alternativos de Resolución de Conflictos, (B) Autorizar la Reconciliación Administrativa de 

Reclamos, (c) Aprobar Forma Adicional de Aviso, y (D) Otorgar Remedio Relacionado, 

emitida por el Tribunal de Distrito de los Estados Unidos para el Distrito de Puerto Rico (el 

“Tribunal del Título III”) el día 1 de abril de 2020 [ECF No. 12576-1]. Se adjunta una copia de 

los Procedimientos de RAC para su referencia, donde se describen todos los métodos que se 

pueden utilizar para liquidar su(s) Reclamo(s) Designado(s). Por favor revise los 

Procedimientos de RAC cuidadosamente. Los Procedimientos de RAC también están 

disponibles en línea en https://cases.ra.kroll.com/puertorico. 

Se incluye una Oferta de Transacción más adelante. Usted debe responder a la Oferta 

de Transacción ya sea aceptando, rechazando, o haciendo una contraoferta. De conformidad con 

los Procedimientos de RAC, si usted y la AEE no llegan a un acuerdo, se enviará su reclamo 

para una mediación evaluativa, en la que un Mediador estará asistiendo con las esfuerzos por 

llegar a una acuerdo transaccional. Vea la Sección 3 los Procedimientos de RAC. Si esos 

esfuerzos fracasan, usted puede decir si acepta proceder con su reclamo mediante arbitraje 

vinculante, o, si cualifica, mediante litigio en los Tribunales del Estado Libre Asociado 

(según se describe a continuación). Vea las Secciones 5 y 6 de los Procedimientos de RAC. Si 

usted no escoge alguna de esas opciones, o si ninguna de las partes está de acuerdo con la 

opción seleccionada, su reclamo se resolverá en el Tribunal del Título III bajo los 

procedimientos descritos en la Sección 8 de los Procedimientos de RAC. 

Este aviso sólo se aplica a los números de reclamaciones designadas mencionados 

anteriormente. Lea el aviso detenidamente y discutirlo con su abogado. Si no tiene 

un abogado, puede consultar con uno. 

Si tiene alguna pregunta, comuníquese con Kroll Restructuring Associates, LLC al 

(844) 822-9231 (llamada gratis para EE. UU. y Puerto Rico) o (646) 486-7944 (para

llamadas internacionales), disponible de 10:00 a.m. a 7:00 p.m. (Hora estándar del 

Atlántico) (español disponible). 

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8 

Oferta de Transacción. La AEE ha revisado su(s) Reclamo(s) Designado(s) y de 

conformidad con los Procedimientos de RAC, ofrece la(s) cantidad(es) establecida(s) en la 

Sección I a continuación como una reclamación general no prioritaria sin garantía en la 

transacción completa y final de la liquidación de su(s) Reclamo(s) Designado(s) (la “Oferta de 

Transacción”). Tenga en cuenta que la cantidad de la Oferta de Transacción y cualquier 

cantidad que pueda usted aceptar puede que NO sea la cantidad que usted realmente 

reciba de conformidad con un plan de ajuste confirmado. El trato que se le de a su reclamo 

quedará determinado por el plan de ajuste. Es posible que la cantidad que a usted se le 

pague bajo el plan por su reclamo sea menor que, y posiblemente sea solamente una 

fracción del monto de liquidación de su reclamo. 

Debe Responder a Este Aviso. Debe devolver este Aviso de RAC a Proskauer Rose 

LLP conjuntamente con una Respuesta Permitida (como se define a continuación) a la 

oferta de transacción antes de la Fecha Límite de respuesta indicada anteriormente. 

Además, si usted está rechazando la Transacción o haciendo una contraoferta, en la 

medida en que su(s) prueba(s) de reclamo más reciente(s) no: (a) indique(n) la cantidad correcta 

de su(s) Reclamo(s) Designado(s); (b) identifique(n) expresamente todas y cada una de las 

causas de acción y teoría(s) legal(es) en las que basa su(s) Reclamo(s) Designado(s); (c) incluya 

información de contacto actual, correcta y completa de su abogado u otro representante; o (d) 

proporcione todos los documentos en los que apoya su(s) Reclamo(s) Designado(s), debe 

proporcionar toda esa información y documentación con su Respuesta Permitida a este Aviso. 

Si no devuelve este Aviso de RAC con la información solicitada y una Respuesta 

Permitida a la Oferta de Transacción a Proskauer Rose, para que se reciba en o antes de la fecha 

límite para responder, se entenderá que usted ha rechazado la Oferta de Transacción y la 

liquidación de su(s) Reclamo(s) Designado(s) avanzará a la fase de los Procedimientos de 

RAC, según se explican en la Sección2(c) de los Procedimientos de RAC. 

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9 

Oferta de Transacción. La AEE le ofrece una reclamión general no prioritaria no garantizada 

permitida por la cantidad de contra la AEE para satisfacer totalmente su(s) Reclamo 

Designado Núm. , lo cual se hará conforme a cualquier plan de ajuste de deudas confirmado 

e implementado en el Caso bajo el Título III de la AEE. 

Las únicas respuestas permitidas (“Respuestas Permitidas”) a la Oferta de Transacción 

son: 

(a) la aceptación de la Oferta de Transacción,

(b) el rechazo de la Oferta de Transacción, o

(c) El rechazo a la Oferta de Transacción junto con una contraoferta (una “Contraoferta”).

La información sobre las Contraofertas está disponible en la Sección 2 de los Procedimientos de RAC. 

Seleccione su Respuesta Permitida en el encasillado a continuación.

DEBE RESPONDER A LA OFERTA DE TRANSACCIÓN Y A LOS OTROS INCISOS 

APLICABLES EN EL RESTO DEL FORMULARIO 

RESPUESTA A LA OFERTA DE TRANSACCIÓN 

 Yo/nosotros aceptamos y estamos de acuerdo con los términos de la Oferta de Transacción. 

(Si usted indica que usted acepta la Oferta de Transacción salte la Sección II, firme el 

formulario al final, y devuélvalo a Proskauer Rose LLP. Si usted no está aceptando la Oferta de 

Transacción, lea cada una de los siguientes incisos cuidadosamente y responda según 

corresponda.) 

O 

 Yo/nosotros rechazamos la Oferta de Transacción. 

O 

Yo/nosotros rechazamos la Oferta de Transacción. Sin embargo, yo/nosotros 

aceptaré/aceptaremos una reclamación general no garantizada permitida contra la AEE por la cantidad 

de $_________ para satisfacer la totalidad del (de los) Reclamo(s) Designado(s), que se hará de 

acuerdo con cualquier plan de ajuste de deudas confirmado e implementado en el Caso bajo el Título 

III de la AEE. 

La Sección 2 de los Procedimientos de RAC establecen las restricciones a las contraofertas. Su 

contraoferta no puede incluir cantidades desconocidas, sin liquidar o cantidades similares y no 

pueden exceder la cantidad, o mejorar la prioridad establecida en su evidencia de reclamo 

presentada o enmendada más recientemente de manera oportuna. Usted no puede enmendar su 

evidencia de reclamo con el solo propósito de proponer una contraoferta por una cantidad mayor o 

para obtener una mayor prioridad. Si usted devuelve este formulario con una contraoferta que no 

cumpla con los términos de los Procedimientos de RAC, se entenderá que ha rechazado la Oferta de 

Transacción, y la liquidación de su(s) Reclamo(s) Designado(s) pasará a la mediación evaluativa 

conforme se establece en las Secciones 3 de los Procedimientos de RAC. 

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10 

Además, si usted está rechazando la Oferta de Transacción o haciendo una contraoferta, en 

la medida en que su(s) prueba(s) de reclamo(s) más reciente(s) no indiquen la cantidad 

correcta de su(s) Reclamo(s) Designado(s); (b) expresamente identifiquen todas y cada una 

de las causas de acción o teorías legales en la cuales usted basa su(s) Reclamo(s) 

Designado(s); (c) incluyan información de contacto corriente, correcta y completa de su 

abogado u otro representante; o (d) provea todos los documentos en los que usted apoya 

su(s) Reclamo(s) Designado(s), usted TIENE que enviar toda esta información y 

documentación con su Respuesta Permitida a Proskauer Rose. 

DEVUELVA SU AVISO COMPLETADO Y CUALQUIER INFORMACIÓN 

SUPLEMENTARIA EN UNA CONTRAOFERTA PARA EL MARTES, 25 DE 

OCTUBRE DE 2022 A LA SIGUIENTE DIRECCIÓN: 

Paul Possinger, Esq. and Ehud Barak, Esq. 

Proskauer Rose LLP 

Eleven Times Square 

New York, NY 10036 

[Firma del Representate Autorizado 

del Reclamante Designado] 

Por: 

[Nombre en letra de molde] 

[Firma del Representate Autorizado 

del Reclamante Designado] 

Por: 

[Nombre en letra de molde] 

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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) 

In re: 

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO, 

 as representative of 

PUERTO RICO ELECTRIC POWER AUTHORITY 

(“PREPA”), 

Debtor. 

PROMESA 

Title III 

No. 17 BK 4780-LTS 

STIPULATION AND AGREED ORDER RESOLVING 

PROOF OF CLAIM OF [CLAIMANT] (CLAIM NO. XXXX) 

PURSUANT TO ALTERNATIVE DISPUTE RESOLUTION PROCEDURES 

The Puerto Rico Electric Power Authority (“PREPA,” or the “Debtor”), by and through 

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

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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2 

sole Title III representative of PREPA pursuant to section 315(b) of the Puerto Rico Oversight, 

Management, and Economic Stability Act (“PROMESA”),2

 on the one hand, and [Claimant] (the 

“Claimant,” and together with PREPA, the “Parties”), on the other hand, hereby enter into this 

stipulation (the “Stipulation”) as follows: 

RECITALS

A. On May 3, 2017, the Oversight Board issued a restructuring certification pursuant 

to sections 104(j) and 206 of PROMESA and filed a voluntary petition for relief for the 

Commonwealth of Puerto Rico (the “Commonwealth”) pursuant to PROMESA section 304(a), 

commencing a case under Title III thereof (the “Commonwealth Title III Case”). On July 3, 2017 

(the “Petition Date”), the Oversight Board issued a restructuring certification pursuant to 

PROMESA sections 104(j) and 206 and filed a voluntary petition for relief for PREPA pursuant 

to PROMESA section 304(a), commencing a case under Title III thereof (the “PREPA Title III 

Case,” and together with the Commonwealth Title III Case, the “Title III Cases”). On October 6, 

2017, the Court entered an order granting the joint administration of the Title III Cases for 

procedural purposes only. Case No. 17 BK 4780, ECF No. 340. 

B. By operation of PROMESA and pursuant to PROMESA section 315(b), the 

Oversight Board is the representative of PREPA as debtor in its Title III Case. 

C. The Court has subject matter jurisdiction over this matter pursuant to PROMESA 

section 306(a), and venue is proper in this District pursuant to PROMESA section 307(a). 

D. On February 15, 2018, the Court entered an Order (A) Establishing Deadlines and 

Procedures for Filing Proofs of Claim and (B) Approving Form and Manner of Notice Thereof

(the “Bar Date Order”) [Case No. 17-3283, ECF No. 2521], pursuant to which, among other things, 

2

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

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3 

the Court directed that creditors file proofs of claim in the Title III Cases by the dates set forth in 

the Bar Date Order. 

E. On [Date], [Claimant] filed Proof of Claim No. [XXX], asserting pre-petition 

liabilities in the amount of $[X.XX] for treatment under a plan of reorganization (the “Settled 

Claim”). 

F. On April 1, 2020, this Court entered the Order (A) Authorizing Alternative Dispute 

Resolution Procedures, (B) Approving Additional Form of Notice, and (C) Granting Related Relief

[ECF No. 12576] (the “ADR Order”). The ADR Order authorized the Commonwealth, PREPA, 

the Puerto Rico Highways and Transportation Authority (“HTA”), the Employees Retirement 

System of the Government of the Commonwealth of Puerto Rico (“ERS”), and the Puerto Rico 

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

ERS, the “Debtors”) to resolve general unsecured claims using the procedures approved by the 

Court in the ADR Order [ECF No. 12576-1] (“ADR Procedures”). 

G. On August 1, 2022, pursuant to the ADR Order, the Debtors transferred the Claim 

into the ADR Procedures through the Twenty-Fourth Notice of Transfer of Claims to Alternative 

Dispute Resolution [ECF No. 21685]. 

H. Pursuant to section 2 of the ADR Order, the Parties have engaged in an Offer 

Exchange (as defined in the ADR Procedures) to settle the validity and amount of the Settled 

Claim, and have determined that the Settled Claim should be allowed in the amount and the terms 

described below. 

NOW, THEREFORE, in consideration of the foregoing, the Parties hereby agree as 

follows: 

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AGREEMENT 

1. This Stipulation shall not become effective unless and until it is approved by order 

of the Court (the “Effective Date”). 

2. Upon the Effective Date, the Settled Claim shall be deemed and allowed in the 

amount of [$X.XX]. 

3. Other than with respect to the Settled Claim, the Claimant hereby irrevocably 

waives any and all claims (as defined in section 101(5) of the Bankruptcy Code) related to the 

Settled Claim, against any of the Debtors, their affiliates, and estates, and is hereby barred from 

asserting any and all such claims whatsoever, whether known or unknown, presently existing, 

whether or not asserted, and whether found in fact or law or in equity, existing at any time. 

4. The claim shall be deemed to be a general unsecured claim and will be treated as 

such under any plan of adjustment for PREPA. 

5. The Title III Debtors’ claims and noticing agent, Kroll Restructuring 

Administration LLC, and the Clerk of the Court are authorized and directed to update the Debtor’s 

claims register maintained in the Debtor’s Title III Case to reflect the allowance of the Settled 

Claim. 

6. The Parties hereto each represent and warrant that they are duly authorized to enter 

into and be bound by 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 this 

Stipulation is legal, valid, and binding upon them. 

7. Nothing in 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 (a) be deemed to be, or construed as, (i) an admission by any party of any 

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5 

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

of the Debtor’s rights to set off or recoup any claim, (iii) a waiver of Claimant’s or the Debtor’s 

rights to determine and/or contest the applicability of a discharge to the Settled Claim pursuant to 

11 U.S.C. § 944, as made applicable to these proceedings by virtue of PROMESA section 301(a), 

or (iv) an approval or assumption of any agreement or contract between the Parties under 

Bankruptcy Code section 365; or (b) impair any right, power, or obligation or be considered a 

waiver of any such right, power or obligation the Parties hereto have with respect to any valid and 

existing agreements between the Parties hereto, which agreements remain in full force and effect 

and are not modified hereby. 

8. This Stipulation contains the entire agreement by and between the Parties hereto 

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 may not be modified other than by a signed writing executed by 

the Parties hereto. 

11. This Court shall retain jurisdiction to hear and determine all matters or disputes 

arising from or related to this Stipulation or the Settled Claim. 

12. This Stipulation may be executed in multiple counterparts, any of which may be 

transmitted by facsimile or electronic mail, and each of which will be deemed an original, but all 

of which together will constitute one instrument. 

SO ORDERED. 

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Dated: 

 

 Honorable Judge Laura Taylor Swain 

 United States District Judge 

Dated: 

 

 [Claimant Name] 

 

Dated: September 30, 2022 /s/ Hermann D. Bauer

Hermann D. Bauer 

USDC No. 215205 

Gabriel A. Miranda 

USDC No. 306704 

O’NEILL & BORGES LLC 

250 Muñoz Rivera Ave., Suite 800 

San Juan, PR 00918-1813 

Tel: (787) 764-8181 

Fax: (787) 753-8944 

/s/ Martin J. Bienenstock

Martin J. Bienenstock (pro hac vice) 

Paul V. Possinger (pro hac vice) 

Ehud Barak (pro hac vice) 

PROSKAUER ROSE LLP

Eleven Times Square 

New York, NY 10036 

Tel: (212) 969-3000 

Fax: (212) 969-2900 

Attorneys for the Financial 

Oversight and Management Board 

for Puerto Rico, as representative for 

the Puerto Rico Electric Power 

Authority

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Exhibit C 

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2

ALTERNATIVE DISPUTE RESOLUTION PROCEDURES

1. Claims Subject to the Alternative Dispute Resolution Procedures.

a) Commencing one hundred (100) days following approval of these procedures by the Court, and

every forty-five (45) days thereafter, the Commonwealth, on behalf of itself and the other Debtors,

shall file with the Court and serve on the claimants identified therein (the “Designated Claimants”),

at the address listed on the claimants’ most recently filed proof of claim or amended proof of claim,

as the case may be, a notice of intent to transfer to the ADR Procedure (the “ADR Transfer

Notice”), and attaching as Exhibit A to the ADR Transfer Notice a schedule of claims that the

Debtors have identified to be eligible to participate in the ADR Procedure. The ADR Transfer

Notice shall be substantially in the form reflected in Exhibit A to the Notice Regarding Amended

Motion for Entry of an Order (A) Authorizing Alternative Dispute Resolution Procedures, (B)

Approving Additional Forms of Notice, and (C) Granting Related Relief [ECF No. 10698-1].

b) In the event that (i) the Debtors file an omnibus objection to Claims, (ii) a claimant objects to the

relief requested in such omnibus objection, and (iii) the Court or the Debtors determine that further

reconciliation of any such Claim is appropriate pursuant to the ADR Procedure, the Debtors shall

file an ADR Transfer Notice with the Court and serve the ADR Transfer Notice upon the Claimant

stating that such Claim has been removed from the omnibus objection and shall be subject to the

ADR Procedure. If the Debtors make such determination, within ten (10) days of service of a

claimant’s objection to the relief requested in the omnibus objection, and no later than seven (7)

days prior to the hearing on the omnibus objection, the Debtors shall file an ADR Transfer Notice

with the Court setting forth the Claims to which an omnibus objection has been interposed and

responded to by the holder thereof as and to which the Debtors have determined are eligible for

the ADR Procedure. In the event that the Court determines independently that further

reconciliation of any such claim(s) is appropriate pursuant to the ADR Procedures, the Court will

enter an order directing the Debtors to file an ADR Transfer Notice with the Court, specifying the

claim(s), and serve the ADR Transfer Notice upon the relevant Claimant(s).

c) The Debtors shall serve upon the Designated Claimant, at the address listed on the Designated

Claimants’ most recently filed proof of claim or amended proof of claim, as the case may be, a

notice regarding the ADR Procedure (the “ADR Notice”). The proposed form of the ADR Notice

is annexed hereto as Exhibit 2. The ADR Notice (i) may request that the Designated Claimant

verify, correct, clarify, or supplement certain information regarding their claim, and (ii) shall state

(a) whether the Debtor consents to the adjudication of the Claim by binding arbitration, as set forth

below, and (b) the costs of arbitration, if the Designated Claim is not resolved pursuant to the Offer

Exchange Procedures (as defined below) or Evaluative Mediation (as defined below).

d) Claims asserting liabilities arising from funded indebtedness, or from the Commonwealth’s

clawback of revenues, shall not be subject to the ADR Procedure.

2. Offer Exchange Procedures

a) The initial step in the ADR Procedure shall be an exchange of settlement offers (the “Offer

Exchange”), which exchange will provide the Debtors and the Designated Claimants the

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3

opportunity to resolve the underlying Claims on a consensual basis, without the need for further 

proceedings. 

b) In the event that the ADR Notice does not include an offer from the Debtor(s) (the “Offer”) to

settle the validity and amount of such Designated Claimant’s proof of claim, within sixty (60) days

of the ADR Notice being served upon the Designated Claimants, the Commonwealth or such other

Debtor, as the case may be, shall serve upon the Designated Claimant, at the address set forth on

such Designated Claimant’s proof of claim, an Offer (the “Offer Letter”). The Offer Letter or

ADR Notice shall be accompanied by relevant documentation relied upon by the Debtor(s) in

determining the amount of the offer. For the avoidance of doubt, however, the Debtor(s) shall not

be obligated to provide with the Offer Letter or ADR Notice all documents on which it intends to

rely in reconciling a creditor’s Claim.

c) Within twenty-five (25) days of service of an Offer via either an Offer Letter or an ADR Notice,

the Designated Claimant must respond to such Offer by (1) accepting the Offer, by execution and

delivery of a stipulation provided by the Commonwealth or such other Debtor in connection with

the Offer or (2) submitting a counteroffer (the “Counteroffer”); provided, however, that any

Counteroffer may only propose an amount that, if agreed upon, will fix the amount of the creditor’s

claim; and, provided, further, that, if the creditor fails to timely respond to the Offer Letter, the

Offer shall be deemed rejected. If the Designated Claimant rejects, or is deemed to have rejected,

the Offer, the Designated Claim will advance to the next step of the ADR Procedures, as set forth

below.

d) When the Designated Claimant responds to the Offer Letter, either by acceptance of the Offer or

the submission of a Counteroffer, the Designated Claimant shall be required to notify the Debtors

if (a) it consents to (and thereby opts into) or (b) does not consent to (and thereby opts out of)

binding arbitration in the event that the Claim ultimately is not resolved through the Offer

Exchange Procedures. If the Designated Claimant returns the Offer Letter without expressly

notifying the Debtors that it consents to, and seeks to opt into, binding arbitration, the Designated

Claimant shall be deemed to have opted out of binding arbitration. Any Designated Claimant that

does not consent to binding arbitration in its response to the Offer Letter may later consent, in

writing, to binding arbitration, provided that the Debtors also so consent. Consent to binding

arbitration, once given, cannot subsequently be withdrawn by either the Debtor or the Designated

Claimant.

e) The Counteroffer may not exceed the amount or improve the priority set forth in the Designated

Claimant’s most recent timely filed proof of claim or amended proof of claim (but may liquidate

any unliquidated amounts expressly referenced in a proof of claim).

f) Within thirty (30) days of receipt of any Counteroffer, the Commonwealth or such other Debtor,

as the case may be, may (1) accept such Counteroffer, by delivery of a stipulation evidencing

agreement to the proposed amount, or (2) reject such Counteroffer, by delivery of notice to such

Designated Claimant that such Counteroffer is unacceptable. The Commonwealth or such other

Debtor, as the case may be, may also submit its own counteroffer to the creditor, and the parties

may exchange as many offers and counteroffers (each, a “Further Offer”) as they deem appropriate

prior to a determination that an impasse has been reached. The Debtors or the Designated Claimant

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g) All Offers, Counteroffers, Further Offers, and other communication and information exchanged in

connection therewith shall remain confidential, be subject to Rule 408 of the Federal Rules of

Evidence, not be an admission of liability on anyone’s part, not be disclosed to any person, court

or tribunal, and not be used other than in connection with the ADR Procedure.

3. Evaluative Mediation

a) In the event that a Claim is not resolved through the Offer Exchange process, the Claim will

proceed to the next step of the ADR Procedures, an evaluation (“Evaluative Mediation”) of the

Designated Claimant’s claim by a mediator (“Mediator”) identified by the Title III Court in its sole

and absolute discretion, including a federal judge. The purpose of the Evaluative Mediation phase

of the ADR Procedures is to obtain a non-binding, confidential, monetary valuation of each

Designated Claim that may assist in achieving settlement by serving as a focal point for further

discussions between the parties.

b) During the Mediation phase, the Title III Court may design a process for assigning Mediators to

Designated Claims, including a process to identify whether any individual Mediator may be

conflicted from resolving a Designated Claim.

c) During the Evaluative Mediation process, the Designated Claim shall be evaluated by the assigned

Mediator. The Debtors shall provide notice to the Designated Claimant within a reasonable time

following the assignment of a Mediator to a Designated Claim. Upon assignment of a Mediator

to a Designated Claim, the Debtor shall provide the Mediator, with copy to the Designated

Claimant, with all information exchanged during the Offer Exchange process. Within fourteen

(14) days of assignment of the Mediator, each party may provide to the Mediator a mediation

statement (the “Mediation Statement”), not to exceed seven (7) pages double-spaced. Within

twenty-eight (28) days of receipt of the information exchanged during the Offer Exchange process,

the Mediator shall estimate the monetary value of the Designated Claim (the “Evaluation”). Upon

notice to the parties, the Mediator may extend the time period for completion of the Evaluation for

a period of no more than fourteen (14) days. The Evaluation shall be limited to a determination of

the monetary value, if any, of the Designated Claim, and shall not raise or purport to evaluate any

issues relating to the potential treatment or priority of the Designated Claim pursuant to a plan of

adjustment. If the Mediator fails to issue an Evaluation within the time periods set forth in this

paragraph, the Designated Claim shall proceed to binding arbitration, where both parties have

 

1 

shall have thirty (30) days from receipt of each such Further Offer (1) to accept such Further Offer, 

by delivery of a stipulation evidencing agreement to the proposed amount, or (2) to reject such 

Further Offer, by delivery of notice that such Further Offer is unacceptable. Failure to respond to 

a Further Offer within thirty (30) days of receipt shall be deemed rejection of such Further Offer. 

The Commonwealth or such other Debtor, as the case may be, may also request additional 

information or documentation (the “Information Request”) from the Designated Claimant. The 

Designated Claimant shall provide additional documentation or information in response to such 

Information Request within twenty-one (21) days following receipt of such Request. Within ten 

(10) days of either the Designated Claimant’s or the Debtor’s rejection of an Offer, Counteroffer,

or Further Offer, the Debtor(s) shall file a notice of impasse (the “Offer Exchange Impasse

Notice”) with the Title III Court.

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consented to same, or to litigation before the Commonwealth or Title III Courts, as the case may 

be. 

d) Within twenty-one (21) days following the issuance of the Evaluation, each of the parties shall

submit to the Mediator a written acceptance or rejection of the Evaluation. The failure to submit

a written acceptance or rejection within twenty-one (21) days shall constitute a rejection of the

Evaluation. If both parties accept the Evaluation, then the Designated Claim shall be deemed

settled and the amount set forth in the Evaluation shall constitute the liquidated amount of the

Designated Claim and the Claims Register shall be updated accordingly. If one or both parties

rejects the Evaluation, then the parties shall have an additional fourteen (14) days to negotiate a

consensual settlement of the Designated Claim. The Debtor shall notify the Mediator immediately

after the expiration of the 14-day period as to whether a consensual settlement has been reached.

e) At any time during Evaluative Mediation, the Mediator may request that the parties participate in

a settlement conference. The parties must participate in any settlement conference called by the

Mediator. Such conference may take place in person or telephonically, in the Mediator’s sole

discretion. The Evaluative Mediation process shall terminate upon the earlier of: (a) the

Mediator’s filing of a notice that (i) the parties have reached an impasse (a “Mediator’s Impasse

Notice”), or (ii) the parties have reached a settlement (such notice shall specify the settlement

amount, which shall constitute the liquidated amount of the Designated Claim and the Claims

Register shall be updated accordingly); and (b) 75 days after the issuance of the Evaluation.

f) In the event that a Designated Claim is not resolved through Offer Exchange or Evaluative

Mediation (an “Unresolved Claim”), such Designated Claim shall be resolved in accordance with

the process outlined in Section 4 below. Within ten (10) days of the termination of Evaluative

Mediation (as set forth in Section 3(e) above), the Debtor(s) shall serve upon the Designated

Claimant a notice describing the opportunity to participate in binding arbitration and the

opportunity for use of Commonwealth court procedures.

4. Resolution of Unresolved Claims

a) The amount of an Unresolved Claim shall be resolved by either: (a) binding arbitration as set forth

in Section 5 below, if the Designated Claimant and the Debtor consented in writing thereto; (b)

litigation before the Commonwealth’s courts, as set forth in Section 6 below; or (c) if either party

determines that the Designated Claim should not be resolved using state court procedures, and in

the event that both parties have not consented to binding arbitration, the Designated Claim shall

be resolved in accordance with the Litigation procedures set forth in Section 8 below. Designated

Claimants may consent to binding arbitration OR to litigate before the Commonwealth’s courts,

but not both. In the event that a Designated Claimant submits an ADR Notice that indicates

consent to binding arbitration and litigation before the Commonwealth’s courts, they will be

deemed to have consented to litigate before the Commonwealth’s courts.

5. Binding Arbitration

a) If the Designated Claimant previously consented in writing to binding arbitration as a means to

resolve its claim(s) as set forth above (either in its response to the Offer Letter or by the terms of

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b) If the Designated Claimant and the Debtors have agreed to binding arbitration, as soon as

reasonably practicable following the Evaluation Termination Date with respect to any Designated

Claim, the Debtors shall file and serve on the applicable Designated Claimant (or their counsel if

known), a notice of arbitration (an “Arbitration Notice”).

c) The Debtors shall solicit proposals from one or more arbitration services providers (the

“Provider”), with a panel of arbitrators (“Arbitrators,” and each, an “Arbitrator”), to assist in

evaluating Designated Claims. The Debtors shall consult with the Official Committee of

Unsecured Creditors prior to selecting the Provider. Prior to engaging such Provider, the Debtors

shall file an informative motion with the Court identifying the Provider(s) whose services they

have solicited. To the extent any party in interest objects to the independence or qualifications of

the Provider(s), such party must file a written notice of such objection within fourteen (14) days

of the filing of such informative motion. Within seven (7) days thereafter, the Debtors may file a

reply in support of the Provider(s) identified. The Court will then determine whether any further

action with respect to the objection(s) is required. Once a Provider of arbitration services has been

selected, that provider’s pricing proposals shall govern all binding arbitrations conducted pursuant

to the process outlined in this Section 5. During the Arbitration phase, each Designated Claim

shall be evaluated by a single Arbitrator from the Provider of arbitration services selected by the

Debtor(s) as described in subsection (d) below. The method by which an Arbitrator shall be

assigned to a Designated Claim shall be determined by the Provider. The Provider and the

Arbitator(s) shall ensure that, in the event an individual Arbitrator identifies a conflict in resolving

a Designated Claim that has been assigned to such Arbitrator, the Designated Claim shall be reassigned.

d) All costs for an Arbitrator’s services shall be divided evenly between the Debtor(s) and the

Designated Claimant. To ensure transparency in the costs of proceeding through binding

arbitration, the Debtors shall solicit pricing proposals from at least two (2) potential Providers of

arbitration services.

e) All arbitration hearings (each, an “Arbitration Hearing”) shall be scheduled by the Arbitrator, in

consultation with the parties. The Debtors shall provide the Designated Claimant with notice of

the date, time and place of the Arbitration Hearing. In the event that the Arbitrator assigned to

resolve a particular Claim is not located in San Juan, Puerto Rico, appropriate video-conferencing

services shall be made available, and any cost of such services will be divided evenly between the

Debtors and the Designated Claimant if not already included in the Provider’s fee.

f) Pre-Hearing. Any pre-hearing issues, matters or disputes (other than with respect to merits issues)

 

1

a separate written agreement either before or after the Petition Date), and if the Debtors agree to 

binding arbitration, and such Designated Claim is not resolved in the Offer Exchange Procedures 

or in Evaluative Mediation, then the Designated Claim shall be subject to binding arbitration. If 

the Designated Claimant has not expressly consented to binding arbitration in its response to the 

Offer Letter and has not otherwise expressly consented to binding arbitration, or if the Debtors 

have not consented to binding arbitration, at the conclusion of Evaluative Mediation, the Claim 

shall be resolved in accordance with the Commonwealth court procedures described below or the 

Litigation procedures described below. 

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g) Limited Discovery. Unless the parties agree otherwise, discovery shall be limited to ten (10)

requests for production of documents, electronically stored information and things, including all

discrete subparts (“Document Requests”); ten (10) requests for admission, including all discrete

subparts; and ten (10) hours of depositions. Any such Document Requests, requests for admission,

and notices of deposition shall be made in writing and shall be served by electronic mail and

overnight mail no later than by 5:00 p.m., Atlantic Time, on a weekday that is not a legal holiday,

no fewer than thirty-five (35) days before the Arbitration Hearing. Responses and objections to

Document Requests, requests for admission, and notices of deposition, if any, must be served

within seven (7) days after service of such Document Requests, requests for admission, and notices

of deposition. Items requested in Document Requests must be produced within fourteen (14) days

after service of the Document Requests, unless the parties agree otherwise. Fact or expert witness

affidavits, to the extent needed, must be submitted at least fourteen (14) days prior to the scheduled

Arbitration Hearing. All documents and affidavits from discovery shall be confidential and shall

not be either (i) disclosed to any person or party not participating in the arbitration proceeding or

(ii) used for any purpose other than in connection with the arbitration proceeding, except as

provided herein. By accepting binding arbitration, the parties agree that no interrogatories shall

be posited. Notwithstanding anything to the contrary in this paragraph, the Arbitrator may modify

any provisions regarding discovery for good cause shown.

h) Pre-Arbitration Statement. On or before fourteen (14) days prior to the scheduled Arbitration

Hearing, each party shall submit to the arbitrator and serve on the other party or parties by

electronic mail and overnight mail a pre-arbitration statement (the “Pre-Arbitration Statement”).

The Pre-Arbitration Statement shall not exceed twenty (20) pages, double spaced, exclusive of

attachments. Quotations and footnotes may be single spaced. At least one-inch margins shall be

used, and printing shall not be smaller than 12-point font.

i) Arbitration Hearing. Unless otherwise agreed by the parties and the arbitrator, the Arbitration

Hearing must be held no later than seventy-five (75) days following assignment of the Arbitrator

to the Designated Claim. Direct testimony shall be submitted in the form of affidavits. Cross

examination shall be conducted via live testimony. Each party shall have a maximum of two hours,

including any rebuttal and cross-examination, within which to present its position at the Arbitration

Hearing. The Arbitration Hearing shall be open only to the parties, their counsel and any witnesses.

Non-party witnesses shall be sequestered. No reply briefs or post-hearing briefs may be filed,

unless the arbitrator requests such briefs, in which case, such briefing shall be subject to the issues,

timing and page limitations the arbitrator imposes.

j) Arbitration Awards. The Arbitrator shall issue a short written opinion and award (the “Arbitration

Award”) within fifteen (15) days after the last day of the Arbitration Hearing; provided, however,

that the arbitrator may extend such period once for an additional fifteen (15) days. Any Arbitration

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shall be presented to the Arbitrator telephonically (or by such other method agreed to by the 

Arbitrator and the parties) for expeditious, final and binding resolution. All pre-hearing issues, 

matters or disputes (other than with respect to merits issues) must be presented to the Arbitrator 

not later than twenty-one (21) days prior to the Arbitration Hearing so as to permit the Arbitrator 

to review and rule upon the requests by telephonic or email communication at least five (5) days 

prior to the Arbitration Hearing. 

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Award shall only determine the amount of the Claim and shall not raise or determine any issues 

relating to the treatment or priority of the Designated Claim. 

k) Finality of Arbitration Awards. All Arbitration Awards shall be final and binding. Any application

to vacate must be limited to the grounds specified in 9 U.S.C. § 10(a) and must be filed with the

Title III Court within thirty (30) days of issuance of the Arbitration Award. The Federal

Arbitration Act, which has been codified at 9 U.S.C. §§ 1-307, shall apply to such applications.

Once the Arbitration Award is issued, the Claims Registry shall be updated to reflect the liquidated

amount of the Designated Claim, as determined by the Arbitration Award.

6. Commonwealth Court Litigation of Unresolved Claims

a) The Debtors shall indicate in the ADR Notice whether they consent to liquidate any portion of a

Claim through the Commonwealth’s courts. For the avoidance of doubt, the Debtors do not

consent to liquidation of any claims or causes of action relating to PROMESA or other federal

laws before the Commonwealth’s courts.

b) In the event that a Designated Claimant elects to liquidate their Claim before the Commonwealth’s

courts, and the Debtors have consented to such liquidation, the Title III stay shall be modified

solely (1) to permit the continuation of those matters that have been initiated in the

Commonwealth’s courts and that the Designated Claimant has alleged in their Claim give rise to

liabilities owed by the Debtors, or (2) to permit the Designated Claimant to commence a new

action in the Commonwealth’s courts, provided, however, that any such new action shall be limited

to causes of action giving rise to the exact same liabilities asserted in their Claim. To the extent

any Designated Claimant raises additional claims or causes of action beyond those giving rise to

liabilities asserted in their Claim, or raises any claims or causes of action relating to PROMESA

or other questions of federal law, the Title III stay shall not be lifted as to such claims or causes of

action. Any statute of limitations applicable to such causes of action shall be deemed tolled as of

the date of filing of the Debtors’ Title III petitions. Claimants shall retain all existing appeal rights

to which they are entitled under Commonwealth law. The Debtors shall file an omnibus motion,

every sixty (60) days, identifying each automatic stay modification agreed to by the Debtors during

the relevant period and seeking Court approval of such modifications nunc pro tunc to the relevant

modification date (each, an “ADR Omnibus Lift Stay Motion”).

c) The Commonwealth’s courts will only resolve the amount of a creditor’s general unsecured claim.

Without limiting the foregoing, any other issue, including, without limitation, the priority or

classification of a claim, distributions with respect thereto, and issues related to subordination

thereof, shall not be subject to the Commonwealth court’s determination and shall be determined

in connection with the provisions of an applicable plan of adjustment or as otherwise determined

by the Title III Court.

d) Litigation before the Commonwealth’s courts with respect to any Unresolved Claim shall proceed

in accordance with all applicable local procedural rules. Each party shall bear their own costs with

respect to any litigation before the Commonwealth’s courts, unless local procedural rules or

statutory fee shifting provisions dictate otherwise.

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e) Nothing herein shall limit the rights of any defendant in an action brought in the Commonwealth’s

courts to remove such action pursuant to 28 U.S.C. § 1441, or of any plaintiff to contest such

removal. Any modifications of the automatic stay, as set forth in and pursuant to the limitations

described in Section 6.b, will remain in effect if an action is removed to the United States District

Court for the District of Puerto Rico. The applicable federal procedural rules shall govern any

such removed action.

f) Once a final judgment (the “Commonwealth Final Judgment”) has been reached with respect to

the amount of an Unresolved Claim litigated in the Commonwealth courts, as the term “final

judgment” is interpreted under Commonwealth law, the Claims Registry shall be updated to reflect

the liquidated amount of the Designated Claim, as determined by the Commonwealth Final

Judgment.

7. General Provisions Regarding ADR Procedures

a) In the event that a claimant elects not to participate in Arbitration or to have their Unresolved

Claim liquidated by the Commonwealth’s courts, (a) such claim, the allowance of which has been

or may be objected to by the Commonwealth, such other Title III Debtor as appropriate, or another

party in interest, shall be subject to the jurisdiction of the Title III Court and the determination

regarding, among other things, the validity and amount thereof, shall be made by the Court, (b)

holders shall retain their rights to have their claims adjudicated by the Title III Court, including

their rights to evidentiary proceedings and to an appeal of the Title III Court’s determinations with

respect to their claims, and (c) nothing herein shall affect the right of the Creditors’ Committee,

under section 502(a) of the Bankruptcy Code, to file objections to claims and the Debtors and the

Oversight Board to oppose any such right to the extent that the Creditors’ Committee files an

objection to a claim.

b) The ADR Procedures will only resolve the amount of a creditor’s general unsecured claim.

Without limiting the foregoing, any other issue, including, without limitation, the priority or

classification of a claim, distributions with respect thereto, and issues related to subordination

thereof, shall not be subject to the ADR Procedures and shall be determined in connection with

the provisions of an applicable plan of adjustment or as otherwise determined by the Title III Court.

c) To the extent a holder of a general unsecured claim has filed, sought or seeks any relief related to

a Claim that is subject to the ADR Procedure, including, without limitation, relief sought in any

adversary proceeding or any other applicable court of law (collectively, the “Actions”), and such

Designated Claimant has not elected to liquidate their Claim through the process outlined in

Section 6 above, such Actions shall be stayed (including with respect to pending discovery) until

the ADR Procedure with respect to such Claim has been completed. Within five (5) business days

of entry of a final order with respect to the validity and amount of such Claim in the ADR

Procedure, a motion shall be filed in the applicable forum to dismiss any corresponding portion of

such Action, with prejudice, and to transfer any remaining portion of such Action, to the extent

not pending or subject to the Debtors’ Title III cases, to the Title III Court presiding over the

Debtors’ Title III cases. To the extent required, the automatic stay, extant pursuant to section 362

of the Bankruptcy Code, applicable herein in accordance with section 301 of PROMESA, shall be

deemed modified solely for the purpose of determining the validity and amount of a claim pursuant

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to the ADR Procedure. 

d) Report to Court of Status of Claims Referred to ADR Procedure. Within sixty (60) days of filing

the first ADR Notice, and every sixty (60) days thereafter, the Debtors shall file with the Court a

notice (an “ADR Status Notice”) setting forth those claims since the filing of the prior ADR Status

Notice that (a) have been resolved through the Offer Exchange or the Evaluative Mediation Process

(the “Offer Exchange Resolved Claims” and the “Evaluative Mediation Resolved Claims”); (b)

have been resolved through Arbitration (the “Arbitration Resolved Claims”); (c) have been

resolved through litigation before the Commonwealth’s courts (the “Commonwealth Court

Resolved Claims,” and together with the Offer Exchange Resolved Claims, the Evaluative

Mediation Resolved Claims, and the Arbitration Resolved Claims, the “Resolved Claims”); and

(d) are currently in the Offer Exchange process, the Evaluative Mediation process, the Arbitration

process, litigation before the Commonwealth’s courts (or the United States District Court for the

District of Puerto Rico, if the action was removed), or litigation before the Title III Court. The

ADR Status Notice shall be substantially in the format reflected in Exhibit A to the Notice

Regarding Amended Motion for Entry of an Order (A) Authorizing Alternative Dispute Resolution

Procedures, (B) Approving Additional Forms of Notice, and (C) Granting Related Relief [ECF

No. 10698-1]. For the avoidance of doubt, the ADR Status Notice shall include, for each

Designated Claim identified, (1) a code indicating the claim amount by reference to brackets, (2)

a general characterization of the type of claim, and (3) if the claim is relating to a pending litigation,

the forum in which the action is pending and the case number, where applicable.

e) With respect to any Resolved Claims, the Debtors shall file with the Title III Court an informative

motion, attaching the form of Stipulation, to be so ordered by the Title III Court. All Resolved

Claims and Arbitration Resolved Claims shall be noted on the Claims Registry of the Title III

Cases and distributions with respect thereto shall be made in accordance with the provisions of the

Commonwealth plan of adjustment or such other plan of adjustment as may be appropriate. To

the extent feasible, and to assist the Title III Court in managing its docket, the Debtors shall provide

an update to the Title III Court regarding any common legal issues shared amongst the Unresolved

Claims, to the extent such common legal issues exist.

8. Litigation of Unresolved Claims

a) Where there has been no consent, under Section 4.a above, to binding arbitration or litigation

before the Commonwealth’s courts, within one hundred and twenty (120) days of the filing of a

Mediator’s Impasse Notice, the Commonwealth or such other Title III Debtor, as the case may be,

shall initiate litigation against the holder of the Unresolved Claim by the filing of a claim objection,

which may be either an individual or an omnibus objection. Each party shall bear their own costs

with respect to litigation of any Unresolved Claim. The Court will provide notice pursuant to 28

U.S.C. § 636 by which all parties can agree to resolve an Unresolved Claim before a United States

Magistrate Judge (the “Claims Adjudication Judges”). If all parties voluntarily so consent, a

Claims Adjudication Judge may conduct all proceedings and order the entry of a final judgment

with respect to an Unresolved Claim. Such final judgment may then be appealed directly to the

United States Court of Appeals for the First Circuit.

b) The Title III Court may also, in its discretion, refer such Unresolved Claims to Claims

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c) No individual who has served as a Mediator with respect to a particular Unresolved Claim may

also serve as a Claim Adjudication Judge with respect to the same Unresolved Claim.

d) Litigation before the Title III Court with respect to any Unresolved Claim shall proceed in

accordance with the Federal Rules of Bankruptcy Procedure, made applicable to this Title III Case

pursuant to PROMESA § 310, the Local Rules for the District of Puerto Rico, and this Court’s

standing and case management orders. In addition to the foregoing, litigation before Claims

Adjudication Judges shall also proceed in accordance with 28 U.S.C. § 636 and Federal Rule of

Civil Procedure 72.

e) Any order/decision entered by the Claims Adjudication Judges shall not provide for any amounts

already disallowed by the Title III Court, specific performance or any other form of equitable

remedy or any other relief impermissible under PROMESA or such other applicable law. To the

extent a Claim requests such relief, those requests for relief will be determined by the Title III

Court. Nothing in this paragraph shall preclude the Title III Court from separately referring such

requests to Magistrate Judges pursuant to 28 U.S.C. § 636 for general pretrial management and/or

Report and Recommendation.

9. Translation and Interpretation Services

a) The Debtors shall provide certified translation and/or interpretation services in connection with

Evaluative Mediation and/or proceedings before the Title III or District Court, and Magistrate

Judges, as specified in orders of the Court, but shall not be obligated to provide such services in

connection with binding arbitration.

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Adjudication Judges for general pre-trial management and preparation of a Report and 

Recommendation pursuant to 28 U.S.C. § 636(b). If a claimant has not voluntarily consented to 

the resolution of their Unresolved Claim by the Claims Adjudication Judges, the Claims 

Adjudication Judge shall make a Report and Recommendation to the Title III Court. Such Report 

and Recommendation will be reviewed by the Title III Court pursuant to Federal Rule of Civil 

Procedure 72, and claimants will have an opportunity to object to the Report and Recommendation 

pursuant to 28 U.S.C. § 636(b) and Federal Rule of Civil Procedure 72(b). Upon reviewing the 

Report and Recommendation, the Title III Court will enter a final determination, which will be 

subject to appeal to the United States Court of Appeals for the First Circuit. 

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